The Capstone

I am not much of a fan of an ultra-modern looking building on the edge of a historic district...and I suspect that is one reason why these aren't selling. I live in a newer construction condo a few blocks away and our 2 beds/2 baths are renting for $2,200-2,300 month- though we don't have a virtual doorman (or real one for that matter) so I could see a slight rental premium for that feature.

It's a nice building. I can remember when it was a parking garage.
Had a rental listing across the street years back.
Totally different building as it was a townhouse.

Not sure I can see someone renting a one bedroom here for $2500 per month as of yet.
You can go to the other side of the park and get 2BR's for that and less like Semerun said.

A purchaser looking to live in it for a few years and then perhaps renting may make sense.

Do you think a one br 670 sq feet. Brand new and never lived in, bldg has outdoor space/garden with each unit having a washer dryer cpuld get $2000.00 per month.

$2,000/Month is probably a little bit of a stretch. Our 2 Beds/2 Baths (just a few blocks away near Broadway) are larger, also having their own washer dryers and their own balcony's with a common garden for only 10-15% more. Apartment 1B in this building (which is on their web site but hasn't been priced publicly) is similar to my own duplex. After the closing the developer added the bathtub/shower into the half bath for about 2k. I wanted it for for my own purposes- but I am sure people often add on after closing with the intent of renting the space out. FYI- some good news on the restaurant/cafe front in the neighborhood in recent weeks/months. Uncle Marks (BBQ/diner style menu) just opened on 143/Broadway. Harlem Public (microbrew pub) is opening in the summer @ 149th and Broadway. Today I learned about The Chipped Cup (coffee shop/pastries) is opening in June- they didn't mention an exact address- only mentioning that they might be neighbors to Harlem Public.

Semerun thanks. I looked at unit 1B, it is being listed around 589K. It is a 1 BR, 1.5 Bathroom, big backyard and a duplex. The downstairs "bedroom" is not legally a bedroom but it is tremendous and has a skylight.

What do you think on the monthly on 2A? 1650? 1750? What about the price, nobody has purchased in the building yet and has been on the market 314 days. In addition, the building is down 90,000 from original asking price or 23%. The price was changed on April 12 and still no contracts.

http://streeteasy.com/nyc/sale/622123-condo-461-west-150th-street-hamilton-heights-new-york

I'm glad you're all discussing this building. I've looked at it three times and had an accepted offer on a unit. I subsequently pulled the offer and the unit price was reduced $6k a week later, $26k from original ask. Essentially, I would have lost money before I even closed. It seems well designed and nicely appointed (appliances, layout). There are GE cafe ranges, Liebherr (sp?) fridges, and Asko washers and dryers in each unit. However, I feel it is very very over priced for the area and the monthly CC are too high for what you're not getting: there is no gym/fitness area and no storage bins.

It seems as if the developer was targeting young first-time buyers. However, the location to me is just way too far uptown for young person. I've walked around the neighborhood and didn't really see anything to attract me to the neighborhood: nightlife, grocery stores, bars, etc. I like to use the gym early in the morning and would have a 10 min walk across the park to get there, that doesn't seem too safe.

I know there is an express line that can you have you in Columbus Circle in ~10 mins, but I still think you'd be hard-pressed to entertain or have any of your friends visit you up there. Of course they'll come for the obligatory housewarming, but that's about it. It's almost as if you lose your "Manhattan Premium" being so far up, but still pay to "be on the island." You'd be better off living in another borough. I just don't see anything to really make those prices move higher. If you ask me, those prices are about 20% higher, if not more, than they should be to move the units.

Home Body,

I tend to agree with everything you said.

I am looking at one for an investment and while I have not made an offer, I think prices are going to decrease there another time. The other thing is there is another similar building in the immediate area called The Nicholas. I do know that the Nicholas is not ready to move in and once that is built, the supply in the immediate area of NEW CONDOS will double.

http://streeteasy.com/nyc/building/the-nicholas

Consigliere,

Believe it or not, the developer at the Nicholas is the same as Capstone. If you look at them both, their layouts and appointments are fairly similar. I think the Nicholas has the location advantage since it's further down.

I agree that another price drop is definitely in store. It's not a matter of if, only when. If you're thinking investment, then I hope you have the stomach to deal with the volatility. As it stands, I don't really see those prices moving. Supposedly Columbia is expanding in the area, but you know how these projects work. What the developers say and what they do are usually two different things. Besides, no one can guarantee the time.

Also, be aware that the abatement on both buildings is 15 year and not the typical 25 year.

I knew those things (developer and abatement).

What do you think the common charges at a bldg like this should be?

Apartment 2A seems like the monthlies would align with a 1 bedroom rent in the neighborhood- though my focus has always been on the owner side rather than rental, so I could be off. Apartment 1B sounds very overpriced to me- knock 100k off and your at least in the right ballpark. As for the Common Charges- the numbers sounds about right to me. I was the Treasurer for my building- we are also in the small building category with less than 20 units. In addition to the Treasurer role, I self managed the building for awhile too. My common charges are slightly lower than The Capstone's- but I could easily see the difference due to the Virtual Doorman in The Capstone.

While I don't want to speculate on the target audience the developer had in mind- I can tell you that the demographic in the neighborhood is changing very rapidly. I closed on my unit in early 2006 and the neighborhood was still very rough back then and remained that way for the 1st year and a half to two years here. Things improved slow but steady from 2008 to 2010. The last two years have really been dramatic though- lots more college/grad students, 30 something professionals and more recently the gay community. Finally we are now starting to see the retail follow (as I mentioned earlier in this thread). I am also noticing friends and acquaintances starting to consider moving into the neighborhood- whereas 3-4 years ago it was not even on their list.

Columbia without a doubt does have presence in the area- but it's mostly an indirect effect on Hamilton Heights. The key expansion of the campus is in Manhattanville- with the most northern portion of the expansion at 134th street. As a result of the expansion they are displacing some residents- and building a new co-op on the corner of 148th and Broadway (I sat through the presentation at the community board meeting last week). They hope to get all the approvals in line in the next several months and expect to be done with the construction in 2 years.

The abatements on both buildings are likely to be 15 years and not 25 years because of the change of the 421A program a few years back. There aren't many 25 year abatements being issued since that change. I don't know what the unabated amount looks like for either of these buildings, but it probably does not have the same dramatic effect as the expiration of the abatements downtown. My abated amount is about $4/month, while the full amount would be somewhere around $30/month- not enough to lose sleep over.

Great comments semerun! Love the perspective.

In terms of common charges, the reason they seemed high to me is because I can't see where the money is going. I understand that there is a doorman but there isn't a gym, storage, or common area lobby. I spoke with the developer and he said 10% of monthly CC goes to the reserve fund, which I can understand. But when I compare Capstone to other condos in lower parts of Manhattan, Capstone's CC are the highest. For example, look at Pascal on 109th (http://streeteasy.com/nyc/sale/601516-condo-333-east-109th-street-east-harlem-new-york), Clarion Uptown Lofts on 111th (http://streeteasy.com/nyc/building/225-east-111-street-new_york), and the Sedona on 119th (http://streeteasy.com/nyc/building/the-sedona). All of those CC range from $300-$400 and they have gyms and storage. Don't have v-doormen, but I'd prefer the storage and gym.

Just another perspective.

Home you are correct. Also i prefer a gym and storage because the tenant can afford the apartment at a higher monthly because they dont need a gym.

I wonder what the deal is with a super bc there is none in the bldg.

Yeah I looked at the site again. A monthly CC + tax of $478 for a 455sqft studio seems a little rich to me, again considering there aren't really any amenities to support it.

From an investment perspective, I feel you'd be able to charge a higher rent for storage and a gym than you could for a virtual doorman and garden, which seem to be the only perks of living at Capstone.

I think there's a part-time super.

I've heard they are negotiating a couple of contracts now. Am thinking about one of the front units. I really like the floor to ceiling windows and the layout with the bathroom that opens to the bedroom and hallway / LR. Seems like a pretty good deal to me so I think I'm going to make an offer. Wish me luck!

Home, I agree.

The incentive here is brand new everything, garden and virtual doorman. Very good sized for a one bed room.

When I went into contract on my apartment (FYI- we have almost the same number of units as the Capstone) the monthly common charges were set artificially low as a marketing tool- and were roughly the same range as the units you posted above. While this was my first ownership situation- I realized digging through the offering plan that the common charges would need to increase significantly to realistically run the building (I realized this before signing the contract). When I became Treasurer a year after moving in, I recommended that we increase common charges by 30%. I explained the reasons why such a large increase was warranted and every owner supported my recommendation. Our largest cost by far was energy- accounting for approximately 1/3rd the total budget- the developer used an ultra low calculation of energy costs- which accounted for a large portion of the increase that I recommended. Without seeing the offering plan for The Capstone, my guess would be that the developer is being realistic on the numbers and not playing marketing games. I would question the common charges on the Clarion, Sedona and Clarion. Also note whether any of these 4 buildings are offering porter services or super services- there is often difference in cost. Figure a porter for a building the size of The Capstone will likely cost about $800-900 month for part time service (this number includes all taxes and insurance- the NYSIF is a killer cost). Also take into consideration whether the building will be self managed or have a building manager. I self managed my building by myself for awhile- and it was becoming a full time job- so we eventually hired a building manager. Figure that will cost between $700-1,000/month for a building manager. When you figure energy, elevator maintenance contracts, accountants, lawyers, building managers, a small reserve fund, etc...it all adds up- and you aren't likely getting the right figures from these other developers. FYI you should also budget for at least 1 owner if not 2 owners defaulting on their common charges. I budgeted for 1 owner- I should have budgeted more...but this is in retrospect.

Very good points again semerun! I enjoy your posts.

Hey look, they signed a contract on one (which, honestly, I was waiting for) and I understand they have a couple more ready to sign. Am thinking about going for it and buying. I spoke to the agent (very nice young woman) and have reviewed the offering plan and feel really comfortable with the common charges. I don't think this is a building where costs are going to go up a lot after closing.