In the latest Offering Plan amendment for this 1989 co-op conversion, somebody made a boo-boo and included the individual rents for the sponsor-owned apartments, rather than just the usual totals: http://97.74.35.99/243wea-21stamendment.pdf One of the great advantages of converting back then was that an apartment whose tenant didn't buy at conversion immediately falls out of regulation when the... [more]
In the latest Offering Plan amendment for this 1989 co-op conversion, somebody made a boo-boo and included the individual rents for the sponsor-owned apartments, rather than just the usual totals: http://97.74.35.99/243wea-21stamendment.pdf
One of the great advantages of converting back then was that an apartment whose tenant didn't buy at conversion immediately falls out of regulation when the tenant vacates or dies. So, while conditions at the time made the sponsor want to sell as many as possible right away, it turned out to be the fewer the better, as long as the conversion minimum was met.
Another is that the mechanics of being a landlord are much simpler. Many of the costs -- taxes/finance/labor/fuel/etc. -- are covered by the one monthly check to the co-op. Repairs that are the shareholder's responsibility rather than the co-op's are done by the co-op's staff with a bargain-rate charge to the maintenance. You get economies of scale, no matter how few apartments you still own.
When a regulated tenant vacates, you can renovate or not, and then either rent or sell, depending on the market for each option.
This sponsor held the shares for 46 apartments, as of July.
26 are market-rate. They bring in $49,200 per month, with maintenance of $18,300. The minimum/average/maximum rents are $1550/$1891/$2700.
20 are regulated. They bring in $15,300 per month, with maintenance of $15,600. The minimum/average/maximum rents are $446/$765/$1071.
Two or three apartments deregulate each year. Of the last five, the sponsor has sold three and market-rented two.
41 of the 46 are straight studios, and five are small one-bedrooms (that's the $2700 high) so the stats aren't useless.
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Response by w67thstreet
over 13 years ago
Posts: 9003
Member since: Dec 2008
News Flash! We had a massive real estate bubble.
$10 invested in apple in 1989 would be worth $700 today. Or if you actually sold the entire bldg in 1989 for $3mm and invested in apple it would be worth an astounding $210,000,000 today!!!!!
BFD NWT. Keep buying RE. It makes it easier for w67 to ensure there will be lots of domestic help when I get older. Flmaozzzzz.
Ignored comment.
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Response by NWT
over 12 years ago
Posts: 6643
Member since: Sep 2008
Time for an update. In the past year, the sponsor sold one of its market-rate apartments.
Of the remaining 25, four were vacant as of July. Rent roll was 261% of maintenance, down from 269% last year. (Maintenance went up 5.5%, and most increases were a bit less than that.)
For the 20 stabilized apartments, rents covered 96% of maintenance, down from 98% last year. (Many tenants were in the middle of two-year terms, and the one-year 4.5% RS increase was 1% shy of the maintenance increase.)
News Flash! We had a massive real estate bubble.
$10 invested in apple in 1989 would be worth $700 today. Or if you actually sold the entire bldg in 1989 for $3mm and invested in apple it would be worth an astounding $210,000,000 today!!!!!
BFD NWT. Keep buying RE. It makes it easier for w67 to ensure there will be lots of domestic help when I get older. Flmaozzzzz.
Time for an update. In the past year, the sponsor sold one of its market-rate apartments.
Of the remaining 25, four were vacant as of July. Rent roll was 261% of maintenance, down from 269% last year. (Maintenance went up 5.5%, and most increases were a bit less than that.)
For the 20 stabilized apartments, rents covered 96% of maintenance, down from 98% last year. (Many tenants were in the middle of two-year terms, and the one-year 4.5% RS increase was 1% shy of the maintenance increase.)
So, another year of no tears for that landlord.
http://midborodocuments.com/243wea-22stamendment.pdf
confused by the comments- I know nothing about coops. would you recommend purchasing in this building?