100 Remsen Land Lease

Nothing new since http://streeteasy.com/talk/discussion/24318-building-at-100-remsen-street

There's always the chance the landowner will lose her mind, and just hand a property worth tens of millions over to the co-op, just because they're them.

The one that's for sale now has 28 years for the shares to lose their entire value, or about $15,000 per year.

I spoke too soon. Last month the co-op sued the landlord in a dispute over rent. Links are in the other thread.

I assume we're talking about unit 7B. I would walk, very quickly, away from this. Red flags: land lease expiring, current lawsuit. Co-op has no assets other than a lease (they don't even own the building?). Listing claims to be around 800 s.f., my calc based on the floorplan given is closer to 600. While I appreciate that all utilities are included in the maintenance, $1500/mo seems high for a non-full-service building (only a part-time doorman?). I pay $1600/mo and we have 15 staff. What % of the maintenance is tax deductible? 0, because the co-op has no underlying mortgage?

Too large a risk for a significant investment.

The co-op does have an underlying leasehold mortgage for $1,500,000, taken out in 2011. Probably to pay for the new windows, etc. Always a tight spot, because they have to spend money to maintain the building, or risk defaulting on the lease. Unlike land-owning co-ops that can roll over their mortgages for decades, a land-lease co-op has to have it paid off by the end of the lease term.

All that's not to say the numbers don't pan out. For all I know $400-something thousand is what the projected buy-vs-rent savings are worth.

Living near this building I have a morbid fascination with this building. Now that there is less than 30 years on the deal with land lord--what are potential sellers to do? Are their homes impossible to buy (other than 15 year mortgages and all cash deals potentially)? When D-day hits are they forced to take whatever deal the landlord cares for to salvage any value on their homes? Do they have any leverage otherwise? If they cannot make a deal who owns what and what can the owners do and what assets do they own?