AZURE intelligence! == new construction on 91st & 1st

why not this instead?

West81st
about 7 hours ago
Posts: 5302
Member since: Jan 2008
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10 East End Avenue #9AMN: 3/4 BR combination coop with river views from LR and DR. Resold 9.8% below 2005 acquisition price, after a year on the market. Timing of renovations not clear.
05/17/2005 Previous Sale recorded for $2,825,000.
09/06/2011 Listed by Douglas Elliman at $3,195,000.
01/17/2012 Price decreased by 6% to $2,995,000.
06/25/2012 Price decreased by 13% to $2,595,000.
10/08/2012 Listing entered contract.
12/10/2012 Sale recorded for $2,548,500.
http://streeteasy.com/nyc/sale/632228-coop-10-east-end-avenue-yorkville-new-york

or this?

columbiacounty
about 7 hours ago
Posts: 11138
Member since: Jan 2009
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Columbia County Rip Van Winkle Bridge #outhouse: Resold 9.8% below 1776 acquisition price, after a year on the market. Timing of renovations not clear.
05/17/2005 Previous Sale recorded for $2.82
09/06/2011 Listed by Douglas Elliman at $3.19
01/17/2012 Price decreased by 6% to $2.99
06/25/2012 Price decreased by 13% to $2.59
10/08/2012 Listing entered contract.
12/10/2012 Sale recorded for $2.55
http://streeteasy.com/nyc/sale/135791-outhouse-rip-van-wink-le-columbiacounty-new-york

Yikes---but that is the while point. When we live in our apartments, the legal basis for the building existing on the land has no bearing on our day-to-day living experience. In my old apartment downtown, I didn't plop down on my couch at night an say to myself, "man, I'm so happy this isn't a ground lease.!" Our living experience we derive from the apartment, the building, it's location, amenities and residents --- not the legal structure underpinning the land. But precisely because the Azure is a lease, you get better value than at a comparable condo. So to me, that's the attractiveness of the Azure. Tremendous value for your money and a very long term ground lease that will significantly outlast both me and my children. If you're personally of the opinion that leases aren't worth it, then that's fine, but it's not a view shared by everyone.

Columbia --- what one wishes to use as a comparable is a personal decision. But speaking personally, if I were looking at the Azure, the Cielo would be an obvious comparison as they are both newly constructed, high ceilings, floor-to-ceiling windows with similar amenities. 10 East End Ave is 55 year old construction (so low ceilings, no floor-to-ceiling windows) that does not have the amenities (no game room, no play room, no resident lounge, no gym etc etc). I'd not even consider it as a comparable and given the clearing price per sq ft, the market also considers it a lower quality property.

but of course the amenities will endlessly drive up the maintenance costs. and honestly, how much time will you or family members actually spend in the game room, resident lounge and play room?

and, of course, you have conveniently left out the significant difference in location. just hope that floor to ceiling windows don't become yet another dated design element that people look back and wonder what were they thinking?

so columbiacounty, you are wishing him a miserable time in his home today and worse in the future?
how very columbiacounty of you.

Land lease could be a very important issue during your lifetime - when does the fix end in 16 years or so, at that point you could see quite a large increase in lease payments, unless it is fixed for longer.

Also, imagine how difficult it will be to explain this land lease, pilot, school etc to a new buyer.

Columbia - Let me reiterate a comment I made before that often gets lost by various posters on this board: real estate decisions are intensely personal. So, the fact that the Azure has a gym; a playroom; a gameroom; a lounge; and a dining room were very positive factors in my family's decision to move here.

For the record, my daughters use the playroom everyday and my wife and I use the gym at least 5 - 6 days a week. And on snowy days like today, that playroom is a Godsend that any parent in Manhattan would want to have.

Now, if you're a couch potato with no children, I can understand that you wouldn't care a whit about those amenities. I, on the other hand, think they're amongst the best reasons to live here.

Now in terms of your comment about "significant difference in location," you're making a declarative comment when you really are making a personal comment that doesn't apply to me (and I suspect a lot of people reading this.) I know that end of East End Ave very well, in fact, my best friend lives literally two buildings away from 10 East End Ave. So, I do not share your view that there's a significant difference in location. In fact, from my personal view, I find the area around 10 East End Ave less attractive than the Azure. My daughters use the 92Y, The Art Farm, Elite Gymnatics and Asphalt Green --- all of which are on 91st St and with 1 - 3 blocks of the Azure, Also, that end of East End Ave reminds me a lot of Sutton Place (which I personally don't like) -- lots of post war 1950s/1960s construction (low ceiling, small window, dark apartments) and it's very quiet over there to the point of being dead. That end of East End Ave might float your boat, but it sinks mine.

But in any event, everyone has different views and needs when it comes to apartments. The only place where they all intersect is the clearing price of the last sale. The unit you cite in 10 East End Ave is a three unit combo of 2,800 sq ft. Making it one of the largest (and hence most valuable) apartments in that building. And it just sold of $910 a sq ft. The last apartment to close at the Azure (only two bedrooms, not four) sold for $1,336 per sq ft. You and I can think, say, believe what we want, but the market is clearly valuing the Azure higher than 10 East End Ave.

Button - if I recall from reading the offering documents (and I read them all, cover to cover, but it was over a year and a half ago) there were two amendments to the ground lease that pushed out the reset of the lease from the original 15 years, to 24 in the first amendment to 34 years in the second amendment. So time in on my side. In terms of the complexity, I figured it out as did everyone else that bought here -- so I'm sure that a future purchaser will figure it out, too. I'm not going to make a purchase decision based on my fears of how easily a subsequent buyer might understand the lease and PILOT.

This is just horrible. Someone is happy with the building, and even likes the things that columbiacounty says are negatives.
What will columbiacounty say next?

Columbia---almost forgot one more thing: this is a personal comment reflecting my taste, but I love floor-to-ceiling windows. And if history is any guide, I doubt that floor-to-ceiling windows will become a "dated design element."

Afterall, it's one of the hallmarks on the International Style in architecture that evolved in the '30s. If it was good enough for Le Corbusier, Mies van der Rohe and Johnson amongst others, I think it'll be more than a passing fad. Johnson's last project before he died was the Urban Glass House down on Spring St (I used to live around the corner). It was an urban condo version of his New Canaan glass house that he designed in the late 40s. That's staying power!

And I think one of the prettiest skyscrapers in NYC is the Lever House on Park/53rd. Another all glass number that looks current and up-to-date despite being nearly 60 years old.

Just one man's architectural opinion.

And BTW.....Lever House sits on leased land! The irony!!

but you do realize that lever house is an office building?

based on your point of view that real estate decisions are personal, then enjoy your decision.

Columbia----thank you, but I'm very aware that Lever House is an office building (I even worked across the road from it for nearly four years and Casa Lever is one of my favorite lunch time restaurants).

And I would have thought that real estate decisions being quite personal is a bit broader than just my "point of view," but a reality that most people would subscribe to. In any event, thank and I have been enjoying my decision very much.

I want and need to live near a garbage station. How close to a garbage station is Cielo? Is it close enough to hear the constant rumble of a nonstop parade of garbage trucks? Will I be able to enjoy the aroma of partially-disintegrated trash wafting gently into my kitchen window if I live at Cielo? Can my children wave at the sanitation engineers as they amble by all day long near Cielo?

If not, can someone suggest a better alternative, but like totally comparable??? But with a garbage station right nearby. That's noon-negotiable.

Welcome back alan. Missed you.
I believe it is a Marine Transfer Station. You do like the Marines, right?

>> If not, can someone suggest a better alternative, but like totally comparable???

Try the Urban Glass House that Sohojohn used to live around the corner from. Directly across from the Sanitation Dept's shiny new Tower o' Garbage, not a full block away like Azure. The real deal from Johnson, not some imitation. Sohojohn obviously has a nose for quality modern architecture.

Sohojohn pile-on.

I think the facts around the proposed Marine Transfer Station have been well publicized -- although apparently lost on some recent posters who clear confuse inanity with humor. While I have no more insight into the outcome of the MTS than anybody else, some basic facts are known:

1) there's a very active and well organized group, including local politicians, fighting the proposal in court -- so they'll have to exhaust their legal challenges before we know if the MTS goes ahead
2) even if the MTS clears the courts, there's a significant budgetary challenge for the City that hasn't fully budgeted for the complete construction of the new MTS and NYC is hardly awash in spare change
3) in the submission to the Army Corp of Engineers, the City laid out a lot of the operational plans for the MTS, which include it being a negative air pressure building to keep odor within the building confines (sorry AH, I won't smell anything in my kitchen); the garbage would be loaded onto watertight containers within the building and then placed in the barges; the trucks would come down Second Ave and take 86th or 90th over to York; there would be no trucks allowed to idle on York; and they'd all use lower sulphur fuel. So, no smells at the Azure and the truck traffic would not pass the building.

And believe me if this thing is ever built, there will be a lot of residents out there with camera phones looking for any signs of odor or other violations of the disclosed operational plan so they could hurry back into court to get an injunction to cease operations.

This would be a much bigger issue if the Azure were on York, rather than being a quarter mile away, which it is. So if Alan really wants to live near the MTS, then I suggest he look at the rental buildings owned/managed by Glenwood that line York Ave....I'm sure he could get something in his budget over there.

Residential buildings with ground leases include the following: All of Battery Park, all of Roosevelt Island and the 4,500 existing residences built using the Educational Construction Fund (ECF). It will include approximately 1,500 units to be built with ECF, on East 96th street, West 70th street and West 61st street. Several Coops on Park Ave were built on the old Penn Central Railroad ground leases. 995 Fifth Avenue the Residential conversion of the Stanhope Hotel along with One Carnegie Hill at 215 East 96th Street and The residential conversion of the Mark at 27East 77th Street were also built on bround leases. All these buildings established their own values in the open market.

The financial terms of the state of the art Azure Ground Lease including its 20 year Tax Benefits and the option to purchase the ground lease fee simple in 75 Years, provide better financial benefits to its purchasers than any of the above listed non ECF ground leases. The Azure Ground Lease has been approved by 88 purchasers, 88 purchaser’s lawyers’ 88 appraisers and loan underwriters at Citibank, Wells Fargo, HSBC, United Nations Credit Union, Chase, Republic and PNC.

Values of residences at Azure in its existing location, with its ground lease, have been established over the last year. The values of the residences have been increasing based on documented sales closings, resales, several refinancings and recent contracts that have occurred. Please refer to Street Easy for documentation.

The remaining high quality intelligently priced 38 unit inventory of large, 2, 3 and customizable 4 BR new construction, high ceiling units of Azure are in a very good position to compete favorably in the open market in 2013.

This is a far different inventory than existed in the building and the Upper East Side open market in the beginning of 2012. The Supply Demand Dynamic of the available Manhattan luxury new construction inventory and the historically low interest rate environment for high net worth quality buyers continues to put upward pricing pressure on sellers throughout the market. The pricing differential of Azure and its new construction comparables will not be completely erased in 2013 but it will diminish over time.

>the 4,500 existing residences built using the Educational Construction Fund (ECF). It will include approximately 1,500 units to be built with ECF, on East 96th street, West 70th street and West 61st street.

Wouldn't the Board of Ed or the City have been better off just selling the land?

Huntersburg -- whilel I'll defer to the sponsor to post a reply, the ECF is a public/private partnership program.

The basis is that a private developer will build a brand new school on a site owned by the Board of Education. In exchange for building the school, the developer is granted development rights to build a residential property on the site with a long dated land lease.

That's what they did with the Azure as MS--4/East Side Middle School is adjoining next door.

If the BOE simply sold the land, they'd have money but no school and nowhere to build a school. Under this program, they get the school and keep the land and the developer gets his project.

As it was explained to me by one of the sponsors early last year when I was looking at the Azure, the reason the Education Construction Fund was so eager and willing to amend the lease and grant very favorable terms to the Azure was because this was the first development in a very long time (decades, I believe) under the ECF program and they wanted it to go well as they had plans to pursue other projects that are underway now

its always good to go first.

Did you know that the First Columbia County Courthouse is located along NY 23B near the center of the hamlet of Claverack, New York, United States. It is a brick building in the Federal style constructed in 1786 and renovated in the mid-19th century.

At that time Claverack was the seat of Columbia County. The courthouse was in use for 20 years until nearby Hudson replaced Claverack as the county seat. Martin Van Buren argued cases there, and Alexander Hamilton may have as well. The Harry Croswell libel case, in which a local journalist was criminally charged for his criticism of President Thomas Jefferson, was first tried here.

After its days as a courthouse ended, the building remained in use as a meeting room. It has since been converted into apartments. In 1998 it was listed on the National Register of Historic Places.
http://en.wikipedia.org/wiki/First_Columbia_County_Courthouse

The ECF by statute must own the land for a minimum of 40 years. I would also like to note that All PURCHASERS AT AZURE HELP INPROVE THE PUBLIC EDUCATIONAL FACILITIES THROUGHOUT NEW YORK. 58% of the maintenance charges of Azure amount to the total of ground rent and Payment In Lieu of Taxes (PILOT). All this is paid to ECF. 45% of the maintenance charges are tax deductible. These payments to the ECF are used to pay off tax exempt bonds that ECF or the City of New York issue. The bond proceeds are used to build MS 114 and other schools throughout NYC. ECF is the only entity within the NYC municipal finance market that receives direct payments of real estate tax revenue.

The above details explain why Azure has a ground lease. The benefits to this public private partnership to the purchasers at Azure are the following:

1. They require less cash to purchase their home since the land is financed with a ground lease under very favorable tax exempt interest rates and lease terms.

2. They do not have to pay mortgage recording taxes of 1.9% thereby further lowering their acquisition costs. By statute the transaction must be a condop since a condo cannot exist on a ground lease unless there is specific authorization from the State of New York as is the case in Battery Park. Azure functions as a condo since there is no board approval for lease and renting of residences after purchase.

3. They uniquely receive additional tax benefits beyond the traditional 421 tax benefits that protect them from tax increases over a 20 year period.

4. They help support the construction of new public educational facilities in their local community thereby further enhancing the value of their homes over the long term.

The details of this public private partnership are indeed complex. The benefits to purchasers, the developer and the community are I believe worth the effort. This model of home ownership will increase over time since the Mayor’s office and the Department of Education want to utilize this program more extensively in the future. The locations it can be used on include all existing schools, all fire houses, all municipal buildings and municipal land throughout the 5 boroughs.

PS. The reason Azure was built as a ECF transaction was there was a vacant dilapidated school on the site originally built in 1860. The scoll was demolished in the construction of the new facuility. The original development proposal completed in 2005 recieved a unanimous vote of support from the community board.

This is interesting information about how land leases can be structured. The public probably has very little general context.

Mattone, lots of talk about 421 tax abatement and various other benefits until 2030 - how do you explain $2.2/sq foot maintenance for 2012 (listed apartments)? That is on the higher end for apartments with no tax benefit, which here will expire. 1800 sqft 22nd floor apt has $4000 per month maintenance - care to share what this will be in 4-5 years as abatement phases out? If this is anything like other abatements, owners are looking at about 4-5% per year increase.

As per your 'comp' at cielo, that pig's been on the market for 4 years.

JButton....I'll leave the sponsor to address the future maintenance charges/growth trends, but the higher monthly charges at the Azure should come as no surprise (although it does vary based on your floor, as I'm paying $1.70 per sq ft/month). After all, residents are paying ground rent as opposed to the Cielo where the cost of the land is subsumed in the (higher) purchase price.

And it's that dynamic that makes the Azure interesting, from an economic perspective.

I think you were referring to 21AD at the Azure, a 1,940 sq ft 3 bedroom listed for $2.669mm compared to 25D at the Cielo, a 1,920 sq ft. 3 bedroom listed at $3.295mm. As you correctly point out, the common charges are different with the Azure 21AD having monthly charges of $4,253 ($2.36 sq ft/mo) and the Cielo 25D having monthly charges of $2,857 ($1.49 sq ft/mo).

Now Mattone posted early that 58% of the common charges at the Azure go to ground rent and PILOT (property tax), while the comparable at Cielo is 28% for property taxes(the listing notes $808/mo of taxes).

Now, let's do some math. Let's tax adjust the monthly common charges at a nice round 50% marginal tax rate (Fed/State/City in the top bracket post last night's bill) for the 28% of the Cielo common charge that is tax deductible (property tax) and the 45% of the Azure common charges that are tax deductible (as per Mattone). That yields $2,452 after-tax per month ($1.28 sq ft/mo) at the Cielo 25D and $3,232 ($1.66 per sq ft/mo) at the Azure 21AD.

That means a buyer is paying $0.38 per sq ft/mo more in common charges at the Azure 21AD than at the Cielo 25D. Based on the 1,949 per sq ft for the Azure 21AD, that's an extra $740 per month compared to the rate you'd pay at the Cielo per sq ft on an after-tax basis.

Now, to put value around that, think of what current mortgage (assume 30 yr fixed at 3.5%) $740 per month would support -- it's $165K. So, you could argue mathematically (and simplistically) that the higher common charges at the Azure for this apartment would require a $165K discount in purchase price vs. the same sq.ft. apartment at the Cielo, holding everything else constant. You'll note that the discount difference in the two list prices is $632,000.

To your point, the relative growth rates in common charges are important to consider here as this simple analysis assumes fixed differential in common charges, so Mattone's response will be of interest. And it's really a ground rent issue as I'll assume that the Azure can manage itself as well as any other building so non-ground rent common charges for the two properties should be assumed to trend similarly, and let's further simplistically assume that prop taxes at the Cielo and PILOT at the Azure grow similarly for ease of comparison.

Now, we both know there are other factors that drive that price discount, but I do think it's not unreasonable to assume that the differential in common charges reflecting the payment of ground rent is being reflected in the lower acquisition cost at the Azure (and then some -- as I further think there's a "ground lease discount" beyond just the math that is factored into the Azure's pricing because leases tend to scare buyers off -- a sentiment often cited on this thread. To me, that's was an opportunity as it didn't scare me off as a buyer and I believe I got great value when I bought at the Azure)

One other key point, to make the comparison even simpler, if you assume somebody finances 70% of the purchase price at the Cielo (and let's just use the listing price for simplicity), you'd have a mortgage of $2.3mm and as it's a condo, you'll pay a mortgage tax of $43,823 (1.9%). As the Azure is legally a CoOp (very unusual for new construction), you don't pay mortage tax, and that $43K saving in closing costs would cover 59 months of the extra $740 in common charges you'd pay at the Azure 21AD compared to the Cielo 25D.

Net net, the economics of a lease vs. a condo are reasonably transparent and I think are driving the value setting of the Azure vs. other "comparable" properties that are condos.

Mattone, was there any negotiation with the ECF about buying out the land at the opening of the development?

Greensdale---Mattone noted a few posts back that the law requires the ECF to own the land for a minimum of 40 years. They can repost to confirm that. But in that case buying the land from the get-go wasn't an option. But the lease is structured with a year 75 purchase option or a one time 50 year lease extension pushing the potential lease term out to 125 years.

Sales update 01102013
The Azure is now over 70% sold. The sponsors have now released the high tower 2, 3 and customizable 4 BR residences all above the 21st floor.

Residence 7C, a 1,441 SF north facing 2BR has closed. Residence 21B a 2BR unit has a signed contract.

Residence 22B, a 1,205 SF 2BR, 2 Bath with East River 10’ ceiling, floor to ceiling windows bosh dish washer, Viking stove and fried with European cabinets and Bosh washer drier is now the lowest priced entry level residence available at Azure. Starting off the 2013 selling season at Azure strong interest has been expressed for this unit and the lowest floor 1,499 SF 2BR 2.5 Bath 21D city views , the 1,391 SF 2 BR 2 Bath with East River facing balcony and Northwest facing residence 21A, a 1810 SF 3BR 3 Bath unit.

If past experience is any guide these residences will have the strongest purchasing pressure over the next few weeks. The values of these units have been established by independent purchasers of comparable units in the building.

Preferred lenders Wells Fargo, Citibank, JP Morgan Chase, HSBC and PNC bank stand ready to finance purchases of Azure residences.

That neighborhood's very ... mmmmm ..... sketchy

What is purchasing pressure?

I think it's similar to glaucoma.

I see.

Thanks, Big Papi, for that, mmmmmmmmm, declarative statement that lacks specifics or facts. I can only observe that I've now lived in Big Papi's "sketchy" neighborhood for over a year and a half and certainly disagree with his rather shallow characterization. And for context, I lived in TriBeCa for four years and Midtown East/Sutton Place for a year before moving to the Azure so I have a good sense of a neighborhood and what is and what is not sketchy. I tend to find there is a certain numerical snobbery when people consider 91st and 1st, (the street number is too high for them and the avenue number is too low, allowing people to draw conclusions merely by gazing at a map!) but my family and I enjoy everything this neighborhood has to offer.

Big Papi makes the most succulent duck.
Big Papi, what is your position on the abortion?

hood is certainly not a very good selling point here. it is safe even though it is a block from projects, but you certainly would not hang out there if you dont live there. It is right out of college rental area pretty much. as per your comparison of hoods, you lived on canal street which is not tribeca.

JButton....I didn't live on Canal. I lived on Greenwich St., so don't be so dismissive. The "projects" you refer to on 92nd are only for senior citizens, so they're totally quiet and a complete non-issue. And while you would choose not to hang out here, which is a personal opinion I respect, I'm happy hanging out here and personally invested millions purchasing here to underscore that. The issue I was raising is that "sketchy" is a loaded term that does not address the area at all. And I'm more than happy to address any specific concerns anybody may have as I actually do live here and suspect that gives me a much more informed opinion that most who post on this board.

Be careful after dark in that hood.

A neighborhood is made of the people in its buildings and the local services provided to the population. As found on street easy for those new readers that are unfamiliar with the neighborhood I have included is a brief overview of several residential rental buildings and their average rents. I have also included a reiteration of several key elements of the neighborhood that have been discussed in some detail previously.

Rental buildings:

Post Toscana, 389 East 89th street average rents $58 psf foot equaling $3,560 per month for a 850 sf 1 bed 1 bath built by a partnership of Carett Properties and Post properties in 2002.

River East, the former gas station, located at 408 East 92nd street, built by the Buck family of Chicago and managed by Rose associates, five active listings $54 psf

Leonard Litwin’s The Brittany, managed by Glenwood Management located at 1775 York Ave. One active listing listed at $50 psf.

There are walkup rentals in brownstones found along 90th 91st and 92nd streets between first and Second Avenues. These buildings are occupied by long term neighborhood families and yes there are some students as well but at these rents I would say more tenants young employees of business located on the UES. Many of these buildings are owned and managed by the very successful Battina family.

Also please note one of the few rentals at Azure was for $11,500 per month. The tenant is a doctor that practices at Mt Sinai Hospital. These above buildings are owned and managed by some of the most prestigious landlords of the city.

The Public Housing which has been mentioned in blog comments above is in fact for senior citizens. In front of the buildings along First Avenues there is a wonderful farmers market that is open in season which has wide community participation.

The sales comps in the neighborhood can be found on street east for locations on East End, York, First and Second Avenues.

Neighborhood Description:

Beyond the stability of tenancy that has the income allowing them to live in these rental and of ownership buildings, as stated several times in the blog string, this neighborhood is unique for the following: its easy access to the best public and private schools in NYC. Throughout the UES 91st street between York and First is known to be filled with family oriented businesses catering to the entertainment and athletic desires of the children in the neighborhood I call it carriage alley. Good ethnic restaurants are found nearby and banking and food shopping is found at Fairway on 86th off first Ave., at The Associated Market on first and 89th, and finally the Duane Read on 1st and 91st.
Residents in these above mentioned rental and sales buildings are in most instances long term residents compared to the high turnover in sales of Lower Manhattan and Chelsea. They enjoy the quietness of the neighborhood and easy access to Carl Schulz Park, shopping and living and raising their families on the UES. I can claim I was a resident of the neighborhood for many years. My children learned to swim at the Asphalt Green. I can unequivocally say the neighborhood has continued to improve over the years with more residential build buildings and more diverse retail opportunities. As the Second Ave subway is and several new private school investments in construction are completed the neighborhood will continue to increase in value and provide a very UES life style.
In short this neighborhood is an active richly diverse safe neighborhood that the owners of Azure thoroughly enjoy.

Conclusion:

It continually surprises me the comments several participants in this blog make that are ill informed, consistently negative and unresponsive to the realities that Azure is now over 70% sold. The residents at Azure haves become an integral part of this interesting community. Finally the remaining high tower thirty eight 2, 3 and customizable 4 BR residences above the 21st floor at Azure are competing well in the open market. This is because of the building’s value , its quality of construction, its building amenities, its views, and yes it neighborhood.

No.. Very informed. Be careful in that hood after dark.

Brooks, did a shady character with a hoodie bump into you by the subway exit one evening? Was your wife followed for a few blocks before the person following her went into a bodega?

Well, I don't know the basis from Brooks2 claim to be "very informed" but his purported "informed opinion" is very different from my experience actually living in this neighborhood for 18 months. Frankly, I have never felt one iota of concern either during the day or during Brooks2's dreaded "after dark." And this isn't a comment I make lightly. I live with with my wife and two young children. Safety is a major priority for me personally and I would never live in a neighborhood where you had to be "careful after dark" and I don't. I and my family feel very safe here and enjoy the neighborhood and the Azure. While B2, and everyone else, is certainly entitled to his opinion, I want others who may actually be reading this board for information about the building and the area to hear from someone who lives here.

Actually, maybe Brooks2 is threatening you. Maybe he's saying you should be careful of him.

will you turn brooks into jimboner?

And the posting from Mattone above missed one of the nicest elements of living in this neighborhood: Eli Zabar's Vinegar Factory. It's half a block away. Has amazing produce, fish, beef, prepared foods and lots of other high end groceries. My family shops there daily. There's also a cafe there that's open on weekends with killer French toast and they have a great catering department, which we've used many times (and their birthday cakes are phenomenal). It's all very pricey (which I think underscores that there's money in this neighborhood). And if you like the smell of fresh baked bread, Eli Zabar's bakery is even closer to the Azure and often the whole area smells of baked bread.

Ok maybe the hood is better now. I lived there years ago. At the time, my roommate was mugged at gunpoint. He was getting his PHD in economists at NYU. He did come home late after putting in some late hours studying downtown.

>will you turn brooks into jimboner?

Abracadabra

The area is not the safest unless they get rid of those public housing across the street.
WIth that being said, there are many shops and traffic around the neighborhood, but I would not go for a walk past the dark.

Brooks2 thanks for providing context to your commentary. I think virtually every neighborhood in the City is meaningfully safer than it was 15+ years ago. I first moved to NYC in the mid 80s and there were a lot of areas where you needed to tread carefully (remember Times Sq back then?).

Ba294...as has been noted on this thread many times before, the public housing that starts on 92nd St is for senior citizens only. It's a total non-issue and suggests to me that you're not super familiar with the area. So I don't know when you last took a walk around here after dark, but it's also a non-issue. I've lived here for the past 18 months and am speaking from daily, personal experience.

And let me add another thought. While much of the discourse on this thread is personal opinions that are often presented as fact, ocasionally there is a true fact that can make a valid point. In the case of the suggestions that the "projects" on 92nd St somehow make the area unsafe, I'd point to a simple market fact to refute that: consider The Brittany. It's a rental building that is cheek by jowl next to the public housing. Look it up on Streeteasy or its own web site. Two interesting things you may notice: of the 272 units, there's only one available for rent. That's remarkably low vacancy for a building of that size; and second, check out the rents it commands. Neither would be possible if the public housing were anything but what they are--quiet and safe and populated by senior citizens.

projects are on 93rd street up to 95th on 1st av. 92nd to 93rd is for senior citizens only.

The Brittany project is owned Leonard Litwin of Glenwood Management. The Chesapeake at 345 East 94th corner of First Ave. across from the housing project is also fully rented. As stated above it is owned by the partnership of Fentner / Durst. This is the same Durst family that owns many office buildings on 42nd Street and one world trade center. The have the financial flexibility to invest anywhere they see value appreciation opportunities. I believe these above mentioned developers as well as other prime development firms such as Extel and Related Companies are likely to bid on the ECF RFP for the 96th street site located on the north side of 96th between 1st and 2nd Avenues. The ECF project will, when completed, be roughly the same size as Normandy Court. The project cost will be in excess of $750,000,000.

I lived in this neighborhood prior to the completion of Normandy Court, One Carnegie Hill, The Monterey, Brittany and Chesapeake. Rents for a 2 br in the Highgate were $1,200 per month. Substantial recent investments like the Azure, $230,000,000 and other residential towers like River East with the accompanying Marriott and The Chesapeake have continued to changed this neighborhood for the better. As stated previously when the Trevor Day school is completing is new 100,000 sf school along with the new 70,000 sf Sacred Heart facility. This neighborhood will be able to claim investments of over ONE BILLON DOLLARS in the last 10 years and almost as much going forward over the next 5 years.

When this magnitude of investment occurs in any neighborhood in NYC, other examples being areas of Chelsea, the Lower East Side in alphabet city and parts of Wall Street, services come, more foot traffic is on the street throughout 24 hours and the perception of safety changes. Note starting during the Giuliani administration, of which I was a member, the reality of the safety changed for the better throughout the city. Over the last ten years housing policies within NYCHA housing projects have also improved. Tenancy, fiscal management and public safety policies are much more restrictive. Today the precinct around Azure is statistically as safe as many other UES precincts.

Which elementary school is zoned for the Azure?

Unicorn: as per Streeteasy:

Local Schools
PS 527 East Side School for Social Action (K)
PS 151 Yorkville Community School (K-5)

All school zoning information comes from the New York City Department of Education. No warranty is made with respect to the accuracy of this information as it may change at any given time. Please consult with the DOE or your broker for the latest information. Schools zoned for this address:

New York Daily News Story on Edcuational Construction Fund and Azure 02012013
: http://www.nydailynews.com/life-style/real-estate/residential-towers-soar-old-school-sites-article-1.1251727?localLinksEnabled=false

Sales update 02012013
With an early start to the 2013 spring selling season, over the last three weeks the following residences at Azure have signed contracts:

6E a 1,203 sf one bed, one bath residence. This is the last one bed room at Azure

19D a 1,499 sf two bedroom, two and one half baths residence.

22B a 1,205 two bedroom with two baths was listed for January 9, 2013 and received a signed contract January 31, 2013

The recently listed next available lowest price 1,205 sf two bedroom, two bath, residence for sale at Azure is 23B.

Based on recent sales activity demand has been expressed for the lowest floor, least expensive 2, 3 and customized 4 bedroom units now remaining at Azure. Remaining residences for sale at Azure now start on the 21st floor

Is there a surgical procedure one can get to eradicate all olfactory function?

It would be very valuable to society because it would mean more individuals could live in very close proximity to a gigantic garbage transfer facility serving millions of people and countless businesses.

"this is a public private partnership that allows for wealthy individuals to give directly back to the city"

awesome, divide your purchase price by 75 and you get your annual giving to the city. at least you feel good it is for the kids.

is the "discount" to other buildings related to the fact that this is a land-lease building, where very few others are?

what are the pertinent specs of the land lease?

why is there a land lease? why didnt the developer just buy the land, build and sell condos, like virtually all other new buildings?

Review a again the basic elements of the lease

A) The lease term is initially 75 years. At the end of the 75th year the Azure co-op corporation has the right to purchase the land or renew the lease for an addition 50 years. Note this provides purchasers the effect of site control through the lease for a minimum 125 years. If the lease renewal is chosen then, at the end of the 125 year lease, the most likely scenario is the landlord, The New York City and the Educational Construction Fund (ECF), will renew the lease to the co-op at that time. As a practical political matter the City of New York does not terminate leases to co-ops with voters in residence.

B) The Lease incorporates 20 years of tax benefits. For the first 10 years of the lease the co-op owners receive 421-A tax abatement benefits. For the second 10 years of the lease the co-op owners benefit from protection from any tax increases due to a tax reassessment of the property.

C) This public private development is built in conjunction with the City of New York and The Educational Construction Fund. By legal statute in all Educational Construction Fund transactions the land must be leased for a minimum of 40 Years. Further information on ECF can be found on their web site or view previous statements made by Mattone Group on this blog

D) The Azure Sales staff provides purchasers with a projection of their specific residence total maintenance charges which include ground rent, tax payments and building operating expenses. The only difference in the maintenance charges of Azure and many other coops and the common charges plus taxes of condominiums is the ground lease payments over time. These amount to about 50 cents per square foot per month. This difference in maintenance charges is the primary cause for the price differential compared to condominiums. Even taking this into account Azure is currently the BEST VALUE PROPOSITION FOR NEW CONSTRUCTION LUXURY RESIDENTIAL PROPERTIES ON THE UPPER EAST SIDE.

E) Azure ground lease benefitS residential owners in the following ways. Buyers save 1.9% of the purchase price since there is no mortgage recording tax. Buyers have a tax benefit schedule of tax and ground rent payments that provide certainty of payments over 20 years unlike other new condominiums or coops. Purchasers are required to use less of their own cash at closing since the land is leased and not purchased. Chase, Wells Fargo, HSBC have all underwritten home owner purchases at Azure. they are comfortable with the ground leased and the appraisal values throughout the building.

Yikes- if you're seriously interested the scroll back up as the developer posted extensively on the lease (about 4 weeks ago), why it exists and some of the other buildings in NYC that are on leased ground - it's a bit more common than you may realize. His most recent post is a good summary. But there's no question that the land lease drives value as the developer didn't have to purchase the land. Economically, it's similar to people leasing cars so they can get more car for their dollar than buying them. But in this case, your lease can run up the 125 years if the owners don't buy the land in year 75. Which they do I will not know as I will be dead at either date!

JButton - your posts are usually amongst the better quality of the Azure thread groupies, so that last one is surprising. The fact is that I'm sure most buyers here at the Azure (and you know I'm one) don't really factor the altruism of the public/private program that permitted the development (I don't own a Prius, either). I bought here because of the quality and value of the building and the amenities in the area for those of us with families. However, anybody who lives in NYC should applaud this program as it allows the development of new schools at no cost to the taxpayer. I have no idea where you live as most posters on this thread revel in their anonymity, but if you live in the five boroughs, you should be cheering this program rather than being snarky about it.

AHart---as I don't troll the Streeteasy boards I don't know where else you visit to have posted over 10,000 messages, but which is your White Whale: the Azure or the Marine Transfer Station? I'm not sure which it is Cap'n?!

>Economically, it's similar to people leasing cars

Not really.

>so they can get more car for their dollar than buying them.

Well, if you want to use this analogy, you get the car for 3 years, and then you don't have the car any more, so you get the land lease apartment, and then ...

>However, anybody who lives in NYC should applaud this program as it allows the development of new schools at no cost to the taxpayer.

You are big on the free lunch thing. The only person I know getting a truly free lunch is Aboutready who is about to get taxpayer money via a legal settlement with the owners of Peter Cooper Village / Stuyvesant Town - taxpayer money that was intended to provide affordable housing for NYC's working and middle class, not a windfall to the wife of an equity partner at a top NYC law firm who entered into a market rate lease on an arms-length basis.

Greensdale....the car lease analogy is simplistic, but necessary given the type of commentary often posted on this board. The aspect of the car lease analogy you miss is that at the end of three years, you can also buy the car. At the end of 75 years, the then a owners of the Azure can then buy the land if they choose. So the simplistic analogy holds.

And I'm not a "fan" of a free lunch. I am a fan of rational public/private programs as they're one of the few ways anything is going to get built given the poor fiscal situation must municipalities face. If you have a specific criticism of the ECF program that underpins the Azure, I'd love to hear about it. But I'm posting here as an owner in the Azure. So as I noted before, I'm agnostic towards the ECF program in what drove my purchase decision. I bought here because of the quality and value. I also have read the entire offering document as did my lawyer, so I understand the terms of the lease and am comfortable with it enough to have made a multi-million dollar investment here. So I have very informed "skin in the game" unlike most who post here.

I have no beef with the building, the neighborhood, or the structure so long as the buyers understand it which I'd hope at these dollars they do and I assume you do well enough. I don't like your car lease analogy that much, though not as much as I didn't like the reference in the Daily News article to London's land leases which remarkably different.

Beware...

known troll.

hfscomm1

Sales status 02082013

Continuing the early spring sales momentum at Azure, Residence 15C a 1,418 sf, southern facing 2BR, 2Bath unit with East River views closed on 02072013. A contract was also signed for Residence 19C a 1,418 sf, southern facing two bed room two bath unit with East River Views. This is the last 2 BR Residence below the 21st Floor. All residences above the 21st Floor have a minimum of 10’ ceilings with floor to ceiling glass exterior walls.

This week negotiations were completed on a high tower CD customized 2,952 SF residence with unobstructed Sothern, East River and Western views to central park. Construction will begin shortly.

THERE ARE NOW ONLY 3 REMINING HIGH TOWER CD FLOOR PLAN 2,952 SF, 4BR, 4.5 BATH RESIDENCES WITH UNOBSTRUCTED SOUTHERN VIEWS AVAILABLE AT AZURE.

Is it pronounced Ma Tone. Or Matt One?

Anyway, what do you think about the proposals for using NYCHA space to build luxury housing? Is that a derivative of what you did with the ECF?

http://streeteasy.com/nyc/talk/discussion/33917-lux-developments-in-nycha-projects

When will the commercial tenant space on 1st Avenue be operational?

The New York City Housing Authority (NYCHA) sale of air rights for new low income and luxury housing development is very consistent the Mayoral policy of utilizing the public private model as expressed in the Azure development. (see the article above evidenced by Greensdale) Please note that the locations of these NYCHA new developments will be inside the existing low income NYCHA communities throughout NYC on underutilized parking lots. The developers of these projects WILL LEASE THE LAND from the City of New York for 99 years. As I have been trying to evidence in this blog, the financial structure of the land lease at Azure is a state of the art financing vehicle used by of the City of New York. This deal structure will become more evidenced in the NYC housing market for many thousands of new development residences in the near future. Note that NYCHA is the largest landlord in the City of NY

The retail space at Azure is currently being marketed by Massey Knakal our broker is Jill Lovatt 212 660 7704 jlovatt@masseyknakal.com Any inquires for use of this 4,800 sf at grade and 2,000 sf belowgrade space should be directed to her for evaluation.

Azure Reaches 75 Percent Sold, Limited Opportunities Available with
Expansive Tower Residences Remaining

Incredible Demand For Upper East Side Luxury Building Reflected In Latest Sales Milestone

NEW YORK, NY – April 4, 2013 – Azure, the Upper East Side’s luxury development located at 333 East 91st Street, has reached the impressive sales milestone of 75 percent of the 128 residences have now been sold. All remaining two-, three- and four-bedroom homes are located in the building’s “Tower Residences” which sit above the 21st floor.

Precious few opportunities remain for prospective buyers to snap up one of the buildings signature expansive residences, such as the 34th floor Penthouse “A”, a 2,620-square-foot, four-bedroom, 3.5-bathroom residence with more than 380 square feet of outdoor space on the market for $5.886 million. Additionally, both of Azure’s penthouses are available to combine and would offer approximately 5,300 square feet of interior and 670 square feet of exterior space including five bedrooms plus an office, five bathrooms and two powder rooms. The combined penthouse AB is on the market for $13 million. In addition there are only three remaining south facing 3,000-square-foot, four-bedroom, four-bathroom customized CD combination residences on floors 27 through 30.

I'm telling you Matt One, you could get rid of that last 25% if you just offered a nice discount to major streeteasy contributors. Ahem

But the whole point is to deliberately sell the building slowly, over a period of 10-20 years, and regularly update on percentage sold every week along the way, along with a lot of irrelevant cut-and-paste drivel. With pinched nostrils.

haha

this one really has been quite the stinker, at least for the developers

>But the whole point is to deliberately sell the building slowly, over a period of 10-20 years,

Fine but a discount would still be nice. 15% and a few personal training sessions with the guy who Jim Hores uses for his rental clients?

Posting of an article in The Observer concerning The Azure neighborhood
: http://observer.com/2013/04/moving-on-up-value-abounds-in-nycs-most-historically-glitzy-neighborhood/

was it part of the original business plan for the building to remain largely empty for years, finally selling out after 10?

i think a big part of the problem is that the bldg is a land lease, a risky feature that nost people cant be bothered dealing with, given that most bldgs arent saddled with this.

Hey "yikes", honestly I think you need to get off it. Sure, I admit that a few years ago I had concern with this building and things were pretty slow to start off. However, assuming the 75% sold statistic is correct then your statement just makes you look like an idiot. At 75% sold "most people" clearly don't have an issue with the building, the land lease, or the location. The whole discussion about people shunning this building is over.

If there's a sucker born every minute, it's also true that it takes many more minutes for enough of those suckers to find their way to a land-lease near a garbage dump that serves 4 million people.

How minutes are there in 15 years?

Wow, the trolls are back (UESBandit excepted). While those who have read this board know that the trolls are not only inane but rather repetitive (some of you would be advised to get some new material). I would describe it as sophomoric, but that would be an insult to sophomores. While I continue to not understand the motivations of people who troll this board posting pointless drivel about a building they have not connection with, let me again be clear to those reading this board for information: I own in the Azure. I have lived here with my family in a four bedroom/3,000 sq ft apartment since 2011 and have been very happy with my decision to move here. Why alanhart describes me and others who live here as suckers is beyond me (so is his 10,855 posts on Streeteasy....but to each his own). I guess you'd almost need to change the descripton from ad hominen attacks into ad aedificium as there's clearly something about the Azure that annoys these people. But to the very valid points of UESBandit, all the pontificating on this board is pointless when you consider the sales and pricing activity of the Azure. It's 75% sold (it was 32% when I moved in). Prices are moving up very nicely, and I've personally made a very healthy return on my apartment. The landlease is clearly not the major barrier that yikes suggests, and the owners of this building can hardly be described as "suckers" as alanhart proposes (although I'm sure he's never met a single one). I'm happy to address any real issue people wish to bring up about the Azure. If the trolls get their jollies from posting verbal attacks that evoke a school playground, so be it, but it's adding zero value for those who actually look for information here.

>I would describe it as sophomoric, but that would be an insult to sophomores.

Now that's a good one.

> I guess you'd almost need to change the descripton from ad hominen attacks into ad aedificium

Actually, that one is even better.

Sohojohn, if you moved to the Azure in 2011, and joined SE in 2011, why did you chose the name Sohojohn?

Greensdale: because I used to live down there and it's an easy to remember "handle" that I've used for a long time.

Do you know NYCMatt?

Who?

Soho is in the United Kingdom of Great Britain and Northern Ireland, not "down there", which is a dirty euphemism.

Well AH, for what it's worth, I lived in London, too.

I have been reading this post for a very long time but have not felt the need to comment until now. My husband and I bought a 2 bedroom unit in October of 2010. We were one of the first full time residents in the building. We have been very happy here. We recently sold the apartment at a profit, much greater than the market, and have upgraded to a larger one in the building. Outsiders may continue to criticize the neighborhood, the prices (which are much better than most other new buildings), the land lease, etc....., but our investment has paid off very nicely. More importantly, we are delighted with what the Azure community provides for us and our daughter. We look forward to raising our family here.

I too have been tracking this post for a long time, having seriously considered purchasing one of the 4 bedroom apartments back in 2011. For me at the time, I just couldn't get over the "land lease" hump - too many unknowns in terms of resale values. And the service charge was ridiculously high, certainly on the apartment we were looking at, which was above the 20th floor. But the building was, and I'm sure still is, spectacular looking with its floor to ceiling windows. I also didn't like the feel of the immediate neighborhood. It wasn't so much the projects, it was more the sterile feeling along that stretch of 1st Avenue - it seemed like it was a post-nuclear fallout area - just dead, with no trees or outside cafes, or anything really to break up the concrete. I have teenage and tween-age kids, so though I can relate to Sohojohn's comments around the playroom and Art Farm, 92Y, etc., my lot have for the most part outgrown those places, and it was more important to have a safe location where they could walk home from school alone. I didn't feel comfortable about them doing that at the Azure. I also feel that the big thing no one mentions is the resale statistics, or rather lack of them. Excluding the odd inside sale like PlatinumPT above, who upgrade to a larger apartment, there have been no real third party re-sales. So, though I think it's a pretty building, I still wouldn't feel comfortable buying in it, as I don't think it has established a track record in terms of maintaining its value. Just my opinion. :)

Can_nyc....for what it's worth, I've lived here since the summer of 2011 and while I was a agnostic about the neighborhood, I have to say it's turned into a pleasant surprise for me. While (as we've both observed) it has amazing resources for children, which would appeal less to those without children or older children, it's still a great area to live even for we grown-ups. One thingI really want to make clear is that this is a safe neighborhood. I say that from first hand experience and that too is a concern for me with two young daughters. I think anyone who actually spends time here would agree. I think the public housing up the road seems to have an unfair perceptional effect on those who are simply visiting. In other words, your kids could safely walk home as thousands of kids around here do everyday. In terms of value, I'm not sure why you make a distinction between new sales and resale. Of course there have been very few resales as most people have lived here for less than a year and a half. But a sale is a sale. And if you look at the sq ft prices being commanded by the new sales, the value story is a strong one. And if you are a long tern owner (as any real estate owner/investor should be) the trajectory for the neighborhood is positive. The 2nd Ave subway will be a huge plus when it's done in a couple of years. Projects like the Trevor Day School and the Sacred Heart facility are further enhancements to the 'hood. The proposal to build a 700 unit high end condo on an ECf land lease on 96th/1st (just like the Azure) will be another positive. I actually think this portion of the UES has one of the more positive trends precisely because it hasn't been rejuvenated like so many other neighborhood in NYC.

nice building and apartments and area is not bad at all (very safe during the day when most of us are out anyway) but 2 strikes - complicated land lease structure (see 190 East 72nd as an example of what could happen once land lease is reset) and high maintenance (over $2/sq foot despite abatements which will go away - so running costs are already higher than average and will be going up). You are getting a 2nd av subway in a few years which is positive.

The development on 1st and 96th will have to be a rental (see how well One Carnegie Hill is doing, or your building for that matter - how long will it take to sell 700 apts?).

cab-nyc - can you confirm that the sponsor had no involvement in your sale?

In the response to the previous few blogs postings I will address first the issue of how purchasers can document the continued increase in value of residences at Azure and secondly the concerns expressed about the immediate neighborhood. A good broker is very helpful. Brokers that have completed salkes at azure can be found on street easy.

It is difficult but not impossible for the purchasing consumer to evaluate the full statistics that support the increasing value of the Azure over the last 2 years. The increase in values is primarily documented in the most recent appraisals of contracts signed. It is also found in appraisals of the units that are being refinanced. Increasing values can also be found in resales. There is only 1 residence that has resold since their original purchase. The purchaser who sold his unit purchased a new larger unit for his growing family. Based on the public record on Street Easy The appreciation in price in the unit 11B was $250,000 over approximately 1 year. This resuled in a 125% return on his equity. There are two resales listed at Azure for sale both are listed at significantly higher prices than their original sale.

Please note the Azure Co-op Board, of which I am a member, provides information to all lender appraisers that are providing refinancing. Without exception all refinancing that has occurred in the building over the last 2 years, the total is currently in excess of 20 units, have been supported by an increase in the appraisal value of the refinancing units when compared to the original purchase price.

Increases in the building’s value are also documented by the recorded prices per square foot of units sold. These statistics are found on Street Easy based on the NYC Department of Finance posts of the recorded price information. The average closing prices of the entire universe of closed units at Azure over the last year was just under $950 PSF, at the end of the third quarter 2012. They were at approximately $1,000 PSF at the end of the 4th quarter in 2012. The average currently for the first quarter of 2013 including closed and signed units, is $1,050. Our most recent contracts are averaging $1,300 PSF. This average building wide statistic however does not tell the full picture of value increases occurring at Azure. This comes from a review Azure most recent sales over the last quarter. The most recent sales prices of our 2 Bedrooms have broken through $1,380 PSF . Our 3 Bedrooms have broken through 1,417 PSF and our 4 bedrooms have broken through $1,500 PSF. Our first quarter sales contracts show a dramatic increase in dollars PSF of units that have not yet been registered by the Department of Finance. Recent purchaser’s bank appraisers do receive this information. All units that are in contract have appraised higher than their contract sales price. A true indication of value increase at Azure is found by looking at the appreciation of the values of the 2,952 SF 4br CD units. There are 13 combination 4 BR units at Azure and one currently being customized. Note 8CD closed at $2,500,000 or $842 PSF in 2010, 28cd will close soon at approximately $4,450,000 or $1,500 PSF.

The values of Azure, in my opinion, have been driven by several factors. Some of these factors such as low interest rates and diminishing supply of high quality new construction residences have benefitted the entire NY real estate market. There are however individual reasons unique to Azure that support the continual increase in value.

Azure has the lowest price, high quality, new construction, large family residences currently available on the Upper East Side near the cities best public and private schools. Comparable new construction unit prices and prices PSF surrounding Azure on 88th street and Lex., along 86th street on York Ave. along First and East End Ave. All have substantially higher sales prices and prices PSF . This price and PPSF gap will close over time in my opinion for two reasons. The most important ingredient to future increases in value will be the completion of the second avenue subway schedule for 2016. This increase in value due to subway completion is now being demonstrated at Hudson Yards with the completion of the 7th Ave subway scheduled for 2014.

The second most important factor is the diminishing supply of new construction residences in the open market in close proximity to NYC best public and Private School. This sales activity is occurring simultaneously with the completion of the sales of the last 25 % of the building representing 33 units. Building values generally increase as buildings fill up. Note the Azure sponsor have intentionally held off the market till now the highest floor units above the 20th floor. These units have 10’ to 11’ high ceilings. It is time to compare, the maintenance charges of Azure with the new generation of new construction and recent renovation projects. Azure’s maintenance charges compare favorably to the Philips House’s, 515 East 72nd, 200 East 79th street, 135 East 79th Street. It is important to see the trend in the new generation of buildings. Azure’s prices demonstrate the value proposition of the total carry cost including maintenance and mortgage. Azure also has great appreciation potential

With all deference to the previous blogger the Azure neighborhood is as safe statistically as other neighborhoods on the UES . More importantly residences at Azure and their children feel safe walking the neighborhood. There are many favorite neighborhood treasures residence tell me about. With regard to the retail opportunities there is to my knowledge approximately 10,000 SF of vacant space near 91st Street and 1st. Note many of the old retail leases are rolling over and new more upscale tenants are moving in to satisfy the needs of purchasers and higher income renters that have moved into the neighborhood over the last 2 years. The Azure Sponsors have intentionally held off of renting the base of our building till the residential sales of Azure are nearly completed. Be assured the final tenancy we choose will be neighborhood compatible with the foot traffic of families with their baby carrigages that bring their children to MS 114, the public school next door, Asphalt green and the children’s entertainment located along 91st street. What is unique about Azure is there will be an increase in these families in the neighborhood as the the BILLION DOLLAR INVESTMENT in institutional educational investment is completed soon in the Azure neighborhood. Sacred Heart’s new athletic facility will be complete next year and Trevor Day’s new campus on 95th street will be done in 2015. Spence is scheduled to start on their facility on 90th street. The Pro Rata portion of the Subway is already invested.

Purchasers in my opinion primarily purchase a home to raise their family in. On average they live in their home for 7 years. Having met each of the purchasers and sitting on the board of the Azure coop I can state that there is a very positive welcoming community that has been created at Azure.
Finally if asset appreciation is the desire of the purchaser I content there is more upside potential at Azure than there is at the more fully valued alternatives of other new construction buildings that are already near mass transit and already have supporting neighborhood retail in place.

So much shillin going on here it's tiresome.
Could not pay me to live there, especially after all the shilling.
If it was such a great building with such value this thread would not exist.
Nuff said

Nicely said, Brooks2. Ditto SohoJohn. JButton - my sale probably was a sponsor one - the apartment we looked at was brand new. In the end, we bid (and then got outbid) on a great apartment nearby (in the Georgica) - and after that we regrouped, and realized (sadly) that we were priced out of the 4 bedroom market, so we went in a different direction, and ended up in Fairfield County. No complaints in terms of square footage, views, or amenities, although the commuting totally sucks! Would take that bland stretch of 1st Ave and 93rd Street any day over the Metro North. :)

J-Button---the lease structure here isn't that particularly complicated and unlike you, I've read the whole damn document. It's actually has favorable terms for buyers, which the sponsors renegotiated in the aftermath of the crisis. The original lease was not attractive and I probably would 't have bought here if it was still in force. Your per sq ft maintenance quote isn't correct for the bulk of the building, but just the very highest floors. In any event, the market is efficient and higher monthly charges result in lower prices. The good thing is the intellectually lazy who refuse to consider a land lease create opportunity and value for those of us who do our homework. I refinanced this past Oct and saw my appraised value pop nearly 10% in just 14 months. Since then, the sq ft prices on my floor-plan have exploded. So, I keep reverting the the essential basics that the market ultimately determines the value of the building. And despite all the bloviating on this blog, the market is sending a very clear message about the Azure.

Brooks2, the "shilling" going on here is largely the result of all the brainless posting by those with some strange issue with this building and clearly too much time on their hands.. The building's value is clear from the sales statistics. Do us a favor and feel free to leave the 'Nuff said" as your parting post and go off to happier hunter grounds for your StreetEasy fix.

How about keep shillin ...