Sale at 409 Edgecombe Avenue

Maybe it's overpriced?

looks like it went inactive
295k for a 1 bedroom with that view seems like a bargain
i know the building, its a great pre-war with a rich history, google the address

the flip tax in this coop is 70% (40% city tax, 30% coop tax) on the profit for the seller.
so if you buy, you are bound by this. next time you wanna sell, you will have to pay to the coop 70% of your sale price. I guess, it stopped a lots of buyers.

sorry, you will have to pay 70% on the PROFIT you make, not on the sale price.
let say you buy it at $295,000. you sale it at $400,000. profit = $105,000. 70% of the
profit will go to the coop. You will make $32,000

I looked at this place long ago,
the 40% city flip tax is for 14 more years..
the city took over because of mismanagement and rehabed the place, so it is to keep the flippers away..

It really is a magnficent building and a historical building as well

how many people can say their coop is a protected New York City Historical Landmark?

who wanna pay 70% flip tax? do I know when I am going to be in 10 years from now?
may be in 10 years I will have to move and sale then what? get only 30% of the profit
when I can get 100% elsewhere?
desperate for an apartment but not so desperate.

then its not for you then, but if you KNOW you love the place then it is a steal, the flip tax is not forever

I agree, its a steal. The flip tax however is a big turn off.

There's another reason they are not selling. The building has not filed it's 2005 financial statements yet and, get this, the treasurer of the building has been "missing" since November 2006. Coincidentally, right when the financial were due! I know this because I made an offer and then couldn't get financing because no one will give a mortgage for this building.

Yeah, I was in the same boat. Heard that they couldn't even locate the paperwork to get the financials done. Scary! I know of two other deals which have been pending for over three months and are ready to crash because of the lack of co-op financial statements. Same thing, can't get a mortgage. And there's no way I'd pay cash for such a risky co-op.

WOW..
that is really sad, really sad....
i made an offer as well, and backed out, but only because something else came around.
i did have some 2nd thoughts...

btw how did you find out about the missing treasurer?
i'm sure the seller broker didn't tell you

the apt listed is on the 13th floor...
when i went to the open house, one woman got on the elevator, then got off immediately when she saw it was on the 13th floor

another question...
isn't the seller broker look into details like this?
i mean if people cannot find financing how can they buy?
it makes no sense.
another issue was the seller broker did not want me have a financing contingency when i made the offer, which now totally makes sense if the building financials are mess.

to poster #11 you said you know of 2 other deals pending that are ready crash. are these in 409 edgecombe or other buildings in manhattan?

I agree #12, it is SAD

the treasurer is "missing"??
no financials for 2005??
the seller broker didn't want a mortgage contingency? no wonder

To Poster #14, the 2 other deals are also in 409. My mortgage broker told me about them.

To #12, I found out about the missing treasurer as the listing realtor finally had to come clean as to why the financials weren't available.

WOW, thanks #18, I remember looking her in the eye and asking her about the financials.
She said everything was fine and the building was managed beautifully, I remember when I pulled out of the deal, I felt bad for her actually, especially since this listing was the only one she seemed to have...what a rotten liar, thank god I didnt get stuck with that apt with the 14 year 70% flip tax....

#19, if you don't mind me asking, when did you make the offer as it sounds like we may have both made it at the same time.

I must have made it before you, sometime in October, so in all fairness the treasurer was not "missing" by that time possibly. We really liked, loved the apt. and well the history of the building was really a plus.
the flip tax and 14 year contract didn't bother me too much at the time because we (my wife and I) were thinking long term anyway.

Yes, you did make it before me as I didn't make my offer until January 2007. You're probably right that the treasurer wasn't missing until around then. We didn't find out about the missing treasurer until pretty late in the game. We were also told that the co-op documents are also missing so it is unsure whether accurate financials can ever be produced for 2005 and 2006. It is terrible that the seller's are stuck in such a bad position due to the unscrupulous actions of others. It's a shame because it really is a great building.

yeah, I really feel for them. the missing treasurer is going to be a real problem. why run unless you took something or did something really bad...
a forensic accountant is what is needed now i think. goodluck to you

this is a great building. I know many who live there and would not trade it for the world. I actually heard that it is in better financial shape than most HDFC buildings out there but then I guess every building has some kind of issue. Don't feed into real estate rumors! I would work for me but I move too often.

they might not be able to trade if they wanted to...
the unit has been on the market for almost 6 months, something is wrong and it is not the price.

has anyone seen this apartment?
I am thinking of going to the next open house, but this thread has me worried.
Looks nice though

they made a play about this building, interesting:

409 Edgecombe Avenue: The House on Sugar Hill is a new play making its debut at the Boston Center for the Arts Plaza Theatre from April 5 to April 21. Written by Boston playwright, Katherine Butler Jones, this play revolves around Madame Stephanie St. Claire, the luminous and controversial “Numbers Queen” of Harlem, who lived among many of the elite black leaders and celebrities of the 1930's at this prestigious address. A flamboyant enigma, Mme. St. Clair championed the rights of the oppressed, while staving off raids on her numbers game territory by white racketeer Dutch Schultz. Tried for murder, the “Queen” often seemed protected by a mysterious and powerful force. The play is produced and directed by Akiba Abaka, founder and Producing Artistic Director of the theatre company, Up You Mighty Race.

http://calendar.boston.com/events/show/972404-409-Edgecombe-Avenue-The-House-on-Sugar-Hill

Anybody has any current info on this building?
Thanks!

I went to the open house this week for the 2 bedroom on 6 - The place was great (it needs some work- a lot of work). I didnt ask the broker about the financials so I am curious to know if things are as bad as above? Does anyone know if the 2006 financial statement is ready?

Do you know the neigborhood well?
I walked around but did not see any supermarkets, grocery stores, etc.
sems a little isolated...
Is it safe?
Thanks!

emmitt~ no one can answer your questions better than the board itself, if you are serious maybe your attorney can get an honest answer, don't depend on the forum or the broker for that

the building is great and the neighborhood is up and coming with the subway and parks near by, however i do think it is safe, people get mugged in the east village and women get raped in the upper east side, its nyc, bad stuff can happen anywhere, just remember your p's and q's and dont think you can walk home at 4am drunk as hell and no one will bother you

the real question about this building is why has 1 apt been on the market for almost 1 year? the price is excellent, and the apt itself is very nice, so why?

I recently purchased in this building. It's great so far, but I spent about $50K in renovations - the place hadn't been touched - maybe ever - but had lots of original details, which was nice. Citibank and Chase are preferred lenders in the building. The financials are worked out, but closing took 4 months. It's a gentrifying building in a gentrifying (fast) neighborhood. They are doing major work on Jackie Robinson Park across the street that should be completed in Spring 09. The neighborhood is historic (as is the building), and lots of people on the block are part of the 30th Precinct's Community Council, so relations with police on this side of JR Park are good. The trip to Midtown is 15-20 minutes, and there's a nice big Pathmark within walking distance - parking is bad. I looked at a lot of apartments over 2 years before I purchased, and although some places in Harlem were kind of creepy, this neighborhood - Hamilton Heights - is pretty clean, well kept, and the people are mostly friendly. I have found the immediate area to be pretty safe, very dog-friendly, and evenly racially mixed between black, white, and hispanic. It seems a lot of people on this block are owners who bought when the buildings were basically given to tenants by the City as HDFCs, and most residents are on top of quality of life issues like noise, kids, trash, and crime.

Interesting question above: Why didn't the selling broker provide this information? Simple. New York State is a "Caveat Emptor" state "Let the buyer beware".
The selling broker, by law, can not provide the buyer with information that would hinder the sale in any way. If so, the selling broker could be sued by the seller and no real estate in New York would be sold.

Working with a competent buyer's broker provides the buyer with the most protection. A competent buyer's broker represents the best interest of the buyer not the seller's interest. A competent buyer's broker will provide the buyer with vital information to make the best educated decision. Information such as: apartment and building history, important financial records, building bylaws, minutes, tax information and history, violations, future projections, renovation history and projections, speaking with residents and members of the board when available, and any other vital information needed.

Also keep in mind, that for the price, to purchase something anywhere in Manhattan is a steal granted the building would eventually resolve the issues in time. There are very few places in Manhattan where you can get a one bedroom for $200,000 in an up and coming neighborhood.

FYI the flip tax is only for the profit....not what you paid for it....and you get to deduct improvements.