610 West 110th Street

See also Sabrina, Avonova, ParkColumbus, etc.

Of the bunch, the guys doing Sabrina might have the right idea: fix up the basics, sell the apartments for whatever the market will bear and let individual buyers (and eventually the condo board) decide how high-end they want to go with their renovations. The disadvantage to that approach is that coherent marketing of the building as a whole becomes impossible. Basically, they're selling raw space in a decent location, B'way between 97th and 98th. Everything else is TBD. The others are trying to sell a lifestyle, and it just isn't credible within the limitations of the buildings and tenant rolls.

That building ... I laugh at some of the asking prices by the owners who were flipping inside to outside prices.

One guy had a very run down unit for sale - #13L
Starting with Weichert realtors:
04/16/2007 Listed in StreetEasy with Weichert Mazzeo at $1,300,000
08/16/2007 Price decreased to $1,257,000
10/17/2007 Listing no longer available

Then over to Halstead:
10/17/2007 Listed in StreetEasy with Halstead Property at $1,295,000
11/09/2007 Price decreased to $1,225,000
12/17/2007 Price decreased to $1,099,000
02/19/2008 Price decreased to $999,999
03/30/2008 Listing no longer available

and unsold.

Maybe if they started at the $999 price, it might have been sold earlier.

But the unit was truly run down. And the building, ...

Verain: Strictly speakly, those wouldn't be flips, since the rental tenants were trying to take advantage of their "right to assign" and pocket the difference between insider and market prices. A lot of tenants tried it, and very few have succeeded so far. That means there isn't much room between the insider prices - which seem pretty reasonable - and the outside market. Not enough to make it worth giving up a regulated apartment, anyway.

I actually think the building (240 West 98th) has a lot of potential, but I've only been inside a couple of times. Other than the rental tenant base (obviously), what do you see as the major flaws?

I wasn't posting with the intention of splitting hairs between terminology like flipping and rights to assign. Readers can understand what is going on.

The true outside market for a long-tail condo conversion is low because there is so much inventory that it will take years and therefore put a dampener on values.

Building problems:
Tons of tenants with completely different objectives and outlooks that owners who shelled out $$$
Board controlled by a sponsor with completely different objectives than new owners
Major facade work necessary in the short-term and long-term
Roof leak problems
Strong potential for future increases in monthlies and for assessments
Poor energy efficiency of design
Low security
Smokers in the building, including in the lobby (yes)
more...?

Verain: Didn't mean to nit-pick you. Just didn't want your thread to get derailed by a bunch of comments on the economics of flipping, since those economics don't really apply to assignments.

I agree with all of your observations about the building. I think many of those problems are typical when you look at the conversion of a "vintage" building, but they are certainly serious.

I'm watching the Sabrina with interest, because I consider it something of a "canary in a coal mine." If the market turns toxic, this building might be the first project to die.

Why is this the first project to die?

Verain: I just did a little research, and was surprised to see that Weinreb submitted the paperwork in January to get the plan at 240 W98th declared effective.

I didn't think they were that far along, and they've put so little money into the thing that I figured they might pull the plug on the condo conversion. I guess they sold the necessary 15% and decided to move forward. So much for my canary. It sure doesn't look like a viable condo at this point. Time will tell.

The other conversions have invested more money, so turning back is probably even less attractive for them.

Got major problems, but its a decent location and style of pre-war building. Probably needs more investment to fix up the facade, roof, lobby, etc. etc.