4w21

i'm missing the inexpensive part....

AND it's a land lease.

STAY AWAY.

A little history at http://www.nytimes.com/2006/01/29/realestate/29post.html

They were pretty cheap, for 2006. Whether cheap enough, who knows....

Also, SE calls it a cond-op, but it's not. Plain co-op holding a ground lease, but run with condo-like rules.

The Malley people bought quite a few of them to flip.

Here's 10C, which just had its first resale since buying from sponsor:

08/24/2006 Previous Sale recorded for $1,384,820.
05/03/2008 Previously Listed by Halstead Property at $1,550,000.
02/06/2009 Halstead Property Listing is no longer available. Last priced at $1,375,000.
07/01/2009 Listed by Corcoran at $1,150,000.
09/18/2009 Listing entered contract.
11/12/2009 Sale recorded for $1,060,000.

Seller had made about $700K on a 2002-2004 flip at 280PAS, so this loss isn't a killer.

Or how about 11D:

09/18/2006 Previous Sale recorded for $1,888,853.
01/22/2009 Listed by Citi-Habitats at $1,795,000.
03/31/2009 Listing entered contract.
05/22/2009 Sale recorded for $1,500,000.

little history on 4B...

Sold on Jul 17, 2006 for $1,615,000
4B

Sold on Oct 24, 2006 for $1,885,000
4B

Sold on Jun 2, 2009 for $1,325,000
4B

Manhattan, NY 10010
Single Residential Coop Unit

Year Built: 2005
Building Stories: 17
Zoning: Elevator Cooperative
Boro-block-lot: 1-822-45

Some of the previous resales below original cost have also been discussed by various posters in the downtown comps thread. See various places on the first 3 pages of the thread, but notably near the bottom of p.2 here: http://streeteasy.com/nyc/talk/discussion/7613-if-you-can-demonstrate-market-movement-with-comps-downtown-edition?page=2

NWT is quicker on the ACRIS draw than I am. By the time I got through the 10C seller's history at 280PAS and 4W21 NWT had beaten me to the post. FWIW, the seller put up $91k + closing costs in equity in the 2002 buy at 280PAS (90% leverage between 1st and 2nd mortgage) and should still have about $350k left after the PAS gain, the 4W21 loss and another round trip worth of closing costs along the way. Not surprising given that prices are still well above 2002 levels.

Just because it's a land lease, doesn't mean "stay away". You need to understand the terms of the land lease before you can make a determination. A land lease is the kind of thing a bad market (when buyer sobriety sets in) punishes a lot more than a good (ie., hot) market when buyer delirium sets in.

The building faces a parking lot. That wont last.

Developer is very good. IN any event, I suppose you can read the Board minutes to determine what construction problems exist, if any.

#3B made a killing, huh?

any updates on this bldg / pricing...is the market still pricing accordingly when taking into account the land lease?

6B and 11B seem reconciled to taking their losses, while the PH sellers are looking for someone who both willing to give them a profit and wants a 900-gallon fish tank: http://www.nytimes.com/slideshow/2010/08/18/garden/20100819-aquarium-slideshow.html

There's an open house for 6B this Sunday, at which the broker should have financials to hand out.

On the plus side, it's a good-looking building. Too many connections to low-end reality-TV, though: the 6B broker and the PH seller.

Does anybody know if there are plans for the parking lot across the street?

There are not. They actually just replaced a couple of car lifts.

About 6 months ago they were testing the soil in the parking lot to see if they can build on it. Nothing further has happened but I wouldn't be surpised if they built there relatively soon.

It now looks like there is going to be a 14 story building where the parking lot is currently situated right across the street from 4 West 21st. It is supposed to have 239 apartments. That will block the view for the whole building except for possibly the 15th floor and will be really horrible to live in such close proximity with for the year or so it will take to build it.

https://streeteasy.com/talk/discussion/39625-sale-at-4-west-21st-street-11d

They have started to build the 14 story building right across the street and it is a con-op. All good reasons why it is less expensive than most!

A C0n-0p! Call the AG.

What a con-op?

Does any one know why the common charges increased so much? Is it due to expiration of tax abatement? Or did land-lease rent go up?

150% increase?

Seems like. Basically 1000 went to 2500. I wonder what happened. My best guess is that there was some type of tax abatement which expired.

From what I can see the real estate taxes went from basically zero to $1.6 million a year. With 56 units this would be about $2,400 per unit per month. I think that would explain a sizable amount of the increase but not all of it.

Thank you. That makes sense. I would have thought the taxes on land lease are lower as they get to deduct land lease expenses. Perhaps they are lower than the comps without land lease but land-lease rate reset. So we are talking about 3.5 per square ft in maintenance where as one could rent it for $5 or max 6 per sq ft.

If the annual ground lease is $375,000 that seems kind of low. I wonder when and what the first reset is going to look like.

Perhaps $375k was just for the first 10 years with expected escalation or the lease resets every 10 years.