The Morad Beekman

Started by lmalloy411_1991500

over 9 years ago

Posts: 0

Member since: Jun 2016

Discussion about 420 Beekman Hill at 420 East 51st Street in Beekman

How would someone feel secure in buying in this building with apartments for sale for so long. (What's going on with the details of this land lease that's scaring people off?)

Response by kwritinwater

almost 9 years ago

Posts: 1

Member since: Jun 2011

The ground lease has no cap and resets every 15 years based on the property value. So if values go up a good amount from the date of the last relevant "determination" for FMV for the property, maintenance goes up a lot. You could easily be paying 5K maintenance for a one-bedroom in 8 years. And then after that in another 15 yrs, another reset. Plus, the lease expires at some point. You can't compare this in any way to an outright purchase where, as values go up over time, you benefit.

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The Morad Beekman

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