Johnathan Rockoff is writing a series for the WSJ about the renovation of a Queens co-op that he just purchased for $355k.
http://blogs.wsj.com/developments/2011/09/19/renovation-chronicle-remaking-our-queens-co-op/ and
http://www.redfin.com/NY/Forest-Hills/7337-Austin-St-11375/unit-4B/home/39660699
Based on his pictures and the author's description, it looks like a gut renovation that will include kitchen, bathrooms, floors, walls-- basically everything. Given that the apt. is 1,350 square feet, how much can he spend and recoup his costs in resale? Given that #10B sold for $620k in January 2010 (and with no other information), it looks like there's room for a large-scale renovation. However, that was the highest priced apartment to trade in the building. I've seen $300k/sq. ft. tossed around often as a figure for gut renovations, which would bring his total cost to $400k, which would price him above #10B.
Thoughts?
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Response by truthskr10
over 14 years ago
Posts: 4088
Member since: Jul 2009
A russian buddy of mine was buying junker apts like this in forrest hills in the early/mid 90s at auction for like 50/60K.
Today, I wouldnt pay more than 250K for an apartment like this and where it is.
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Response by angray
over 14 years ago
Posts: 103
Member since: Sep 2011
Not sure how much the maint. is for his building, but I think he overpaid for a gut reno. Also, not sure how old his son is but if he's in elementary school I think PS196 is the better zone school not PS101.
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Response by ab_11218
over 14 years ago
Posts: 2017
Member since: May 2009
you are not paying $300 psf reno in queens. more like $100, maybe $150.
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Response by eliz181144
over 14 years ago
Posts: 211
Member since: May 2009
I tend to agree with ab. Our reno on 157th st was done around $100/sq ft. Of course you had to absolutely ride the contractors but it was an absolute bargain if you had the time/energy to do it.
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Response by generalogoun
over 14 years ago
Posts: 329
Member since: Jan 2009
PS 101 is the elementary school in Forest HIlls Gardens. That means they are in an excellent neighborhood with an equally excellent public school. Those on this board who don't know Queens.....
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Response by front_porch
over 14 years ago
Posts: 5321
Member since: Mar 2008
ogun, since you know Queens -- wouldn't there be significant train noise impacting this building? I would think the difference between #4B and #10B might be significant in terms of what you hear from the railroad...
ali r.
DG Neary Realty
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Response by ab_11218
over 14 years ago
Posts: 2017
Member since: May 2009
ali considering that there is a building across the street, 4B will have significantly less noise then 10B. it is "protected" from the train.
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Response by jsw363
over 14 years ago
Posts: 235
Member since: Dec 2008
If Johnathan only pays $150/sq ft. for a cost of $200k, that seems like a much better investment. It looks like there's a lot of work to be done and will take time and effort from his part as well.
If in fact being on a lower floor is better in this building (as per front porch's comments), then he actually stands to at least break-even on this property after a few years. That said, I hope that his family can fit into the apartment for five years and doesn't outgrow it too soon. It'll definitely be on the high end for this building however.
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Response by angray
over 14 years ago
Posts: 103
Member since: Sep 2011
Even at $100/sqft that would bring his total cost to $485,000. I see a few 2br/2ba coops in FH in the low $400's. Is the building commanding such a higher price? Unless he really wanted a gut reno, but from the article it didn't sound like the case.
Based on the quality of the renovations from the pictures, do you think that he'd be able to recoup his investment? He purchased for $355k and must have invested at least $175k if we assume $150k/sq ft and 1,150 sq. ft.
Does $530k seem like a reasonable price for this apartment? (This of course excludes his costs of maintaining a separate residence during construction.) That would make it the most expensive apartment in the building...
(http://streeteasy.com/nyc/building/73_37-austin-street-queens)
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Response by Truth
about 14 years ago
Posts: 5641
Member since: Dec 2009
There is press exposure to be had for his contractors.
He will re-coup with a kick-back from them.
A russian buddy of mine was buying junker apts like this in forrest hills in the early/mid 90s at auction for like 50/60K.
Today, I wouldnt pay more than 250K for an apartment like this and where it is.
Not sure how much the maint. is for his building, but I think he overpaid for a gut reno. Also, not sure how old his son is but if he's in elementary school I think PS196 is the better zone school not PS101.
you are not paying $300 psf reno in queens. more like $100, maybe $150.
I tend to agree with ab. Our reno on 157th st was done around $100/sq ft. Of course you had to absolutely ride the contractors but it was an absolute bargain if you had the time/energy to do it.
PS 101 is the elementary school in Forest HIlls Gardens. That means they are in an excellent neighborhood with an equally excellent public school. Those on this board who don't know Queens.....
ogun, since you know Queens -- wouldn't there be significant train noise impacting this building? I would think the difference between #4B and #10B might be significant in terms of what you hear from the railroad...
ali r.
DG Neary Realty
ali considering that there is a building across the street, 4B will have significantly less noise then 10B. it is "protected" from the train.
If Johnathan only pays $150/sq ft. for a cost of $200k, that seems like a much better investment. It looks like there's a lot of work to be done and will take time and effort from his part as well.
If in fact being on a lower floor is better in this building (as per front porch's comments), then he actually stands to at least break-even on this property after a few years. That said, I hope that his family can fit into the apartment for five years and doesn't outgrow it too soon. It'll definitely be on the high end for this building however.
Even at $100/sqft that would bring his total cost to $485,000. I see a few 2br/2ba coops in FH in the low $400's. Is the building commanding such a higher price? Unless he really wanted a gut reno, but from the article it didn't sound like the case.
So Rockoff posted his final post in the Renovation Chronicles series yesterday. (http://blogs.wsj.com/developments/2012/02/14/renovation-chronicle-its-done-take-a-look/) The series itself was disappointing--really more of an abbreviated series of blog entries, but still helpful to see the project from beginning to end.
Based on the quality of the renovations from the pictures, do you think that he'd be able to recoup his investment? He purchased for $355k and must have invested at least $175k if we assume $150k/sq ft and 1,150 sq. ft.
Does $530k seem like a reasonable price for this apartment? (This of course excludes his costs of maintaining a separate residence during construction.) That would make it the most expensive apartment in the building...
(http://streeteasy.com/nyc/building/73_37-austin-street-queens)
There is press exposure to be had for his contractors.
He will re-coup with a kick-back from them.