Discount for Occupied Rent Stabilized Coop

There was a prewar two-bedroom, one-and-a-half bath in the West 90s that went up for sale for $595K a couple of years ago. They weren't letting potential buyers in, but knowing the building that it was in, I'd say market value would have been approximately double that. I didn't buy it because I would have wanted it for personal use, and I assumed that the then-tenant could easily be in place for thirty more years. It didn't sell, so I assume that pretty much everyone else did roughly the same calculation.

ali r.

In general these deals don't get done on single units, but on packages, and every time I've seen single units offered in recent memory they have been insanely overvalued. The market for individual units, which had been robust as tax shelters, changed drastically in ?1986? when the tax law changed to disallow deductions of "passive loss" against ordinary income.

Just approaching a Sponsor and inquiring about a specific unit would probably lead them to suspect there was a reason it would be vacant soon.

https://www.nytimes.com/1995/12/29/world/a-120-year-lease-on-life-outlasts-apartment-heir.html

Here's an interesting comp. It sold this year with a $571/month tenant per the description. Now lucky death or other "circumstances" a few months later, back for sale all clear. Price gap $462K to $738K list.
https://streeteasy.com/building/350-west-57th-street-manhattan/10e

Pier45, Very interesting find.

There is something very odd considering the statement "Unit 10E was renovated 10 years ago with still some pre-war details and charm".

As well as apparently coming back on the market almost immediately after closing.

Keep in mind that tenant can also bring in a relative or domestic partner who will then be granted rights to the apartment on tenant's death or vacancy. So even if tenant is 90+ years old and death eminent that doesn't mean LL will be able to reclaim the unit...

I know of a gay 70y old male rent stabilized tenant who married at 30y old female to increase the buy out. 30y old moved in rent free.

Or decreased his buyout by 50% ;)
(And unless he's an RS tenant in a building which has already converted to a Coop/Condo there's not much opportunity left for buyouts)

I am sure he had a pre-nup.

Yeah like no hanky panky!