As an investment property

Cannot be too precise but looks like this unit was offered for rent for 10,500 per month (126,000 per year). Since it did not get rented, it is likely worth less than that, let's say 9,500 per month (114,000 per year). A land lease building, so maintenance is super high at 6,000 per month (72,000 per year). Therefore, assuming 100% utilization, an investor income would be 114,000-72,000=42,000 per year.
Dividing by a cap rate of 3%, the unit is worth $1.4M (vs 3.1M listing price). The 3.1M listing price implies a cap rate of only 1.3%. Also, if assuming any other expenses besides maintenance, such as utilization less than 100%, repairs, insurance, management costs, or rent lower than 9,500 per month, the unit is worth less than 1.4M. Finally, since it is a coop, there might be additional issues with rentals due to restrictions from the board. Maybe it did not get rented because the board denied applicants? (But more likely because it is a very overpriced 2-br.)

Much better prices at another land lease building.
3G https://streeteasy.com/rental/3240891
Listed for rent for 3,100 per month, my guess could be rented for 2,700 per month = 32,400 per year. Maintenance of 2,170 per month = 26,040 per year. Income of 6,360 per year for investor. Divide by 3% cap rate, value is $212k, close to advertised price of 229k. Better value if assuming that rents will return to pre-COVID levels (~3,600 for this apartment) quickly.
https://streeteasy.com/building/carnegie-house/3g
Of course, the expenses will go up when the lease expires and the cap rate will end up below 3%. Land lease buildings seem to be a particularly bad deal for investors.

Bond St!!

Any other takes on valuation? Is it possible to justify a number higher than 1.4M?

Amazing that new land lease buildings have been coming online as late as 2006.

NYC real estate prices *always* rise, so just assume it goes up 10% a year like prices have since the Dinkins days, and you'll get rich(er) owning this. NYC is coming back, baby!
The only reason it's offered at this incredible price of $3 million is that others haven't yet seen this amazing opportunity! Hurry! As soon as people come back, the pent up demand will be overwhelming.

So, how do I do as a broker? Convincing?

Also, 48 Bond is priced much higher than other units nearby.
https://streeteasy.com/building/17-bond-street-new_york/2a
Another unit offered on the same street and also on the 2nd floor, a legal 1br but similar size, and with 1/3 carrying costs (although the more expensive building has a swimming pool). Priced at 1370 per foot (vs 2050 per foot for the other building).

>> Is it possible to justify a number higher than 1.4M?

$80M. Bank of America pays 0.05% interest, so if you put $80M in a bank you’d earn $40K/year. But here, we are looking at an opportunity to earn $42K/year. Therefore, you’d be better off paying $80M for this than having it sit in the bank, so it’s worth $80M.

17 Bond is just one bath. Second bedroom is not really a bedroom. No Central AC. So you can’t compare. I am not saying the price of 48 Bond is right.

And what is the value of this one?
https://streeteasy.com/building/bryant-park-place/2d

<> How do you post a floorplan of what is basically a single room and show its measurements as 33x22 (=726), and then say it is 1100 sq ft? And why are the monthlies on this one so much more than other units? The 10D sale (not well renovated) suggests this place might be worth maybe $850-900k fully renovated, but it is going to cost $300k to get there. Building lofts and stairs is expensive.

Super tired and need to review this in the light of day, but if George were a broker in for the long con without the full disclosure, the pitch would be convincing. Still very curious as to where George’s moral compass lies because I feel like he is a trained Libertarian who thinks maybe the theory does not enable the world he actually wants to live in. #BTDT. Hoping that George somehow connects with Inonada, RichardBerg, Steve123 et al and they show him the light.

And, @nyc_sport and @lrschober, I feel like both of you are closer in my preferences than are ino, RB or steve123 (although one of you strikes me as center right while the other strikes me as marginally left of center left), I believe that George, Ino, RB and Steve123 are an unspecified number of years younger, so I enjoy listening to them talk amongst themselves.

Now there is competition in the same Bond street building at similar price point
https://streeteasy.com/building/48-bond-street-new_york/3b

Given the rental available and the monthlies, what is the sale listing worth?
https://streeteasy.com/building/379-1-avenue-new_york#tab_building_detail=1