The Phillips Club

Always fractional shares for sale in this building. Anyone have experience? Good investment?

https://streeteasy.com/talk/discussion/43467-the-phillips-club

Phillips Club is a consumption product. We have owned there for 9 years and absolutely love it. Prior to maintaining a full-time residence in NY, we used our unit there whenever we came to NY. Seven years ago we began maintaining a full-time residence in NY, but we have kept our Phillips Club unit because it serves as the best guest bedroom one can offer in NY. Highly recommend, but I would never consider anything like this as an investment. While there is an excellent resale market for these units, but I suspect the best one is every going to do is get their capital back after holding for a lengthy period of time. We never expect to actually make money if/when we decide to sell it; the comparison we ran and continue to run is what it would cost us for hotel rooms for as much as we "need" them. In our personal calculation, it is a no-brainer to keep our unit there, but that is only because we would otherwise be spending money on hotel rooms for family members we encourage to visit us whom we don't otherwise have room to house in our small apartment. In terms of accommodations, comparable hotel accommodation is quite pricey.

I think the above post is spot-on.

@30yrs - do you have an e-mail address that you use to communicate with SE posters? We are looking for a paid RE consultant and are wondering if we can engage you if you are in the industry in any such capacity or whether you might be able to recommend somebody.

P.S. to @30yrs -more specifically we would like someone who can provide basic training to our building’s newly intalled board of directors. We believe the board that was just voted out may have gotten some poor advice from outside service providers, and we want ti make sure the new board (we are only one of seven members) is properly trained on fiduciary duty, conflicts of interest and oversight responsibilities. The outgoing board president (of multiple decade tenure) may have been well-intentioned but simply got misguided professional advice. We tried to get other board members to convince said former president to step down to avoid the humiliation of being voted out, but the outgoing board doubled down and we had to effect change the hard way. The spectacle that was this year’s Annual Shareholder Meeting was painful to watch and could have been avoided entirely with the proper advice from outside service providers. We did what had to be done, and for the life of me, I cannot figure out what the outgoing board was thinking. We told them it was coming, giving them every chance to save face, but they fought bitterly to the end. I can only surmise that they got terrible advice from somewhere.

Final note - when I refer to “our building,” I am referring to the coop that is our full-time residence, NOT the Phillips Club, whose excellent management we praise all the time and point to for best practices. If the west side were convenient to the office, we would buy in 1965 Broadway, which is managed by same group that manages the Phillips Club because we love both that management and the location. 1965 Broadway and Phillips Club (155 West 66th) are around the corner from each other.

david at dgneary.com
Please put something in the subject line to make it stand out from the pack ;)

Thx - will reach out next week via e-mail with subject line "MCR Seeking Coop Board Training Service Provider."

Multi-- The Cooperator is a good resource: https://cooperator.com/

Excellent commentary