Special assessment discovered in diligence

Negotiation pure and simple between the unique buyer and seller in each transaction. There is no norm here; just like buying a single family home where your assessment of the infrastructure will lead you to offer whatever the property is ultimately worth to you given your totality of circumstances.

Most likely it's not final yet, but you expect to pay a lot more

If a building actually has problem financials you can't fix that with a small adjustment to purchase price. And if they are dependent on commercial income which they aren't receiving, you have to really look carefully because not only have retail rents decreased, but vacancy allowances have skyrocketed. So it's not just an assessment for a currently vacant space, but possibly a permanent maintenance increase as well.
To some extent, things were easier when Coops were 80/20 limited because all the retail was below market and no one gave up leases.

You may see similar things happen to Coops which have become overly dependent on income from flip taxes.

I was just assuming permanent maintenance increase. I think Mina is drawn to a certain type of building where inexorably increasing maintenance is likely the norm (established UES coops), so it is going to be hard to find a building where the due diligence doesn’t reveal a similar picture. To find out of this is really the case, she may need to nix a contract or two during the due diligence phase. Unless the apartment was precisely what I was looking for and a rarity, I might well lower the offer.

Maintenance may increase a lot going forward.

Happening in my building and it's not pretty.

Stache, how much of a hit are you taking monthly? How long has the commercial space been open?

I can't go into details because of litigation. In the six years that I have lived here maintenance on my studio is up $250 per month and the assessments for me average out to about 2k per year. The building has undergone quite a bit of work which factors in.