CW is that purchasing combination apartments can offer premiums to both sellers because of the premium attached to larger units. There is an interesting example at The Beekman (admittedly an odd situation) of multiple apartments being combined and destroying value. I believe that principally this has to due with the high maintenance in the building, but I'd be interested in hearing others'... [more]
CW is that purchasing combination apartments can offer premiums to both sellers because of the premium attached to larger units. There is an interesting example at The Beekman (admittedly an odd situation) of multiple apartments being combined and destroying value. I believe that principally this has to due with the high maintenance in the building, but I'd be interested in hearing others' thoughts on this situation.
#104 is listed at $1.6mm with $7,643 maintenance (after numerous price cuts)
http://streeteasy.com/nyc/sale/428374-coop-575-park-avenue-lenox-hill-new-york
In order to re-create the same layout, you'd have to combine #201, 203, and 204; priced at $1.3mm, %0.8mm and $1.3mm respectively for a total of $3.4. This is an impressive premium (213%) to that of the combined apartment, excluding the costs of combination. I would expect a small premium for a higher floor, but this is extreme.
http://streeteasy.com/nyc/sale/576712-coop-575-park-avenue-lenox-hill-new-yorkhttp://streeteasy.com/nyc/sale/566563-coop-575-park-avenue-lenox-hill-new-york
(I can't include the last link because my post has been flagged as spam.)
Is the maintenance the sole issue here? Am I missing something?
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Response by duvravcic
almost 15 years ago
Posts: 78
Member since: Jan 2009
It is a land lease bldg., which also explains the high maintenance, jsw363. To top it off, unless things have changed recently, I think the lease is set to expire in a few years and their future is quite uncertain...
I truly feel bad for the owners.
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Response by Wbottom
almost 15 years ago
Posts: 2142
Member since: May 2010
combos are no great shake--mntnc psf is higher than the rest of bldg--and layouts often end up inferior to original
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Response by lucillebluth
almost 15 years ago
Posts: 2631
Member since: May 2010
most of the layout problems used to see with combos came from just bad design. the space itself could usually have been used much better with a better architect/design team. with many combos you can just tell that the architect/design team didn't really think about the space and flow, just kind stuck X number bedrooms and X number baths, as requested. live better, people - hire good designers for any of your designing needs!
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Response by jsw363
almost 15 years ago
Posts: 235
Member since: Dec 2008
Duvravcic--I wasn't aware of the land lease issue, but that would affect all apartments in the building equally, so should have minimal effect on the combination. The only effect that I can see is that a combination would be a bigger investment that the tenant would potentially have to write-off.
Still, it's pretty crazy that you could buy three apartments for $1.6 that are listed separately for $3.4mm. What's to stop someone from purchasing the combined unit and splitting it up? Looks like a great opportunity, no?
Lucille--I agree that this layout is pretty terrible. It looks as though they combined #103 and #104 before adding 101, which isn't really integrated with the other two. This may account for some of the awkwardness. It looks as though it could have been an amazing apartment if there had been more thought to the combination.
It is a land lease bldg., which also explains the high maintenance, jsw363. To top it off, unless things have changed recently, I think the lease is set to expire in a few years and their future is quite uncertain...
I truly feel bad for the owners.
combos are no great shake--mntnc psf is higher than the rest of bldg--and layouts often end up inferior to original
most of the layout problems used to see with combos came from just bad design. the space itself could usually have been used much better with a better architect/design team. with many combos you can just tell that the architect/design team didn't really think about the space and flow, just kind stuck X number bedrooms and X number baths, as requested. live better, people - hire good designers for any of your designing needs!
Duvravcic--I wasn't aware of the land lease issue, but that would affect all apartments in the building equally, so should have minimal effect on the combination. The only effect that I can see is that a combination would be a bigger investment that the tenant would potentially have to write-off.
Still, it's pretty crazy that you could buy three apartments for $1.6 that are listed separately for $3.4mm. What's to stop someone from purchasing the combined unit and splitting it up? Looks like a great opportunity, no?
Lucille--I agree that this layout is pretty terrible. It looks as though they combined #103 and #104 before adding 101, which isn't really integrated with the other two. This may account for some of the awkwardness. It looks as though it could have been an amazing apartment if there had been more thought to the combination.