building at 420 East 51st Street

That's why apartments sell for less than in non-land-lease co-ops. Whether it's enough less is up to the buyers. The 99-year lease has another 61 years to run, with ground rent adjusted every 15 years to 6% of the land's unimproved value. Lenders seem to have no problem with the situation.

An interesting case the other week where the landowner (not this one) missed the date for getting the land appraised, so co-op got to continue paying old rent until the next readjust point.

it seems like depending on the lease term some land lease properties may be looking at reductions in their ground rent.

Yeah, could be. If the reappraisal period was, say, five years, and coincided nicely.

Or ten years, 2002 to 2012. may not be that common, but it's interesting to consider it happening at all.

does anyone know when the next adjustment on the land lease is due?

PHA is quite odd.
Sold in Oct 2009 for $1,060,000 with an already high $3924/month maintenance on advertised 1600int/600 ext sq ft.
Described as follows;
"A superb find on one of Manhattan's most prized and charming culs de sac - and the only two bedroom penthouse currently available in the Beekman Sutton area. This spacious and sunflooded five room two bedroom 2.5 bath penthouse has sweeping city and river views throughout. At approximately 1600', the elegant layout includes a grand reception foyer leading to a sensational living room, ideal for entertaining, with two exposures including a large picture window upon the river. There is an oversized formal dining room, as well as a grand master suite, plus ample second bedroom, and a large eat-in kitchen"
http://streeteasy.com/nyc/sale/371553-coop-420-east-51st-street-beekman-new-york

Now shift to 10 months later, already resigned to losing at least 75K (-7%) with an ask of $985K and now described as "raw space" and the maintenance is $6017/month(+35%)!

http://streeteasy.com/nyc/sale/545011-coop-420-east-51st-street-beekman-new-york

Holy give me a mulligan on my purchase Batman!

land lease building. Wait a few more months before the reality sets in that prices have to come down to $200/sq ft.

Maintenance has gone up 52% Who wants to be there Board is crazy....spent $500,000 fighting increase and due to ineptitude has this result...good luck

The fee is owned by Abi Kalimian, one of the toughest New York real estate owners

any update on this building? Seems like no one can sell their units is there any chance that the cc will go back down?

the penthouse mentioned above traded for 800K....I adore a penthouse life...

land lease, so cc's probably won't go down

Brooks2
>land lease, so cc's probably won't go down

Let me make sure I understand. Renting is better than buying, but renting the land and buying the apartment is worse than buying both the land and the apartment?

The idea of rental increase every 10 or so years based on the land value is really concerning. seems like the last time the coop had to incur major legal fees to deal with the negotiation, so as an owner you ought to assume that will happen each time, with the owners bearing the costs. then on top of that, you could see a situation where the one bedrooms have a maintenance of 5K per month after the next adjustment or two. How does this all add up? The prices may be low but do they make up for all this risk?

Does anyone know when the next adjustment is due. Any other info appreciated.

2025