Air rights - Advice on Selling

Also – if anyone is clear on how taxes rule on proceeds of air rights sale, that would be helpful. Ie. who pays transfer taxes and are tax consequences on the building or just the unit owners individually?

joeybanana

in About Brooklyn 11 years and 3 months ago

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joeybanana | 11 years and 3 months ago

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Hello, Our small condo has been approached by a developer in the area with an offer to purchase our air rights. Would appreciate an advice here on how/when to negotiate, what to look out for, possible adverse consequences, and also – what is reasonable in terms of valuation here. Thanks so much for your help!

ekjordon | 11 years and 3 months ago

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First and foremost you need to determine what it’s worth to the developer. He or she is likely developing or planning to develop an adjacent lot. You can have an appraisal of the air rights done by paying for it outright or asking a broker to help and negotiating a set fee for the service or a percentage for repping you in the deal with the developer. The valuation has so many variables including neighborhood, how critical your air rights are to the viability of the project etc. If you’d like a recommendation on an appraiser or broker just let me know. Adverse affect are likely the potential loss of light, air, views. Construction noise and pollution (these are temporary). Elan

DouglasAlan | 11 years and 3 months ago

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The three things I would consider most are water, parking and how much the neighbors are going to resent me when a 100-unit condo get’s built on my brownstone block. Maybe the building wouldn’t be out of character with the current appearance of the block and/or you don’t care what your neighbors think. But it’s happened where the new big building siphoned off water from an infrastructure that couldn’t handle the units, resulting in lower water pressure for all. (I don’t know how you would look into this.) And, consider how many of your new neighbors will have cars taking up that last space.

joeybanana | 11 years and 3 months ago

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Thanks guys. It’s a small building on the block behind us not looking to build up significantly – just needs some extra space to make another unit (or make a current one a bit larger). So no apparent worries of major infastructure burden/parking, altering feel of block.