Co-op of the Day: 75 Henry Street
The listing for this 1,500-square-foot three-bedroom at 75 Henry Street makes a big deal about architectural lineage of its renovation but we gotta say it’s not doing a whole lot for. Nor is the asking price of $1,600,000 which seems very pricey for this building. Most folks who can drop this kinda dough on an…
The listing for this 1,500-square-foot three-bedroom at 75 Henry Street makes a big deal about architectural lineage of its renovation but we gotta say it’s not doing a whole lot for. Nor is the asking price of $1,600,000 which seems very pricey for this building. Most folks who can drop this kinda dough on an apartment in The Heights are going to want something prewar. Granted, we’re sure the views are nice and there’s some cheap parking available, but we’ll be very surprised if this fetches anywhere near the asking price.
75 Henry Street [Douglas Elliman] GMAP P*Shark
The price is delusional. Streeteasy shows a 3 BR in this building that sold in ’06 with a final ask of $1.2m. Prices have not gone up 1/3 since ’06.
An investor expecting to make 8% wouldn’t pay any more than $550k for an apartment that could rent at 5000/mo and has a maintenance of $1384/mo.
Even in a coop that cannot be rented, rental value should be the basis for an owner-occupant’s calculation too, because rental value (or less) is the market equilibrium price.
Rental value is key, because in NY there is an ample supply of comparable units that investors can easily change from investment into owner-occupied. If owner-occupants are willing to pay more than rental value, investors can make money by selling out to them. Some will. That will increase the supply of units for sale to owner-occupants. More supply means lower prices. Prices should keep dropping until all units are owner-occupied, or the rental value is no more than the owner-occupant value, whichever comes first.
If you pay more than current rental value, you are betting that the market will never reach equilibrium or that it will reach it by rents going up rather than prices going down. As we’ve seen, bubbles can lead markets to move far away from equilibrium. But they can’t do it forever.
To justify this asking price, you need to believe that the rent for an equivalent to this apartment will reach 12k/mo in short order. Or you need to believe that NYC is exempt from the usual rules of market economics.
420K tops to live in the housing projects, and “just me” needs to grow a pair if he is going to be a real estate agent in this market.
tyburg,
With regards to the parking, it is based on average turnover of spots and # of names on the waiting list.
The garage is a public lot, not exclusive to the Cadman Plaza complex residents, so it is more fluid a garage than if it were strictly for residents. A lot of people who work at Borough Hall use that garage, other BH residents, etc.
My folks use to park at the Love Lane/College Park garages. When they closed they went to Cadman to ask about a spot. They were told the waiting list was approaching 6 months long
How do you know how long the wait for a parking space would be? If you live there, you either have a car or you don’t right? What would make turnover so easy to predict? Seems odd to me.
fsrq –
my comment is based on what i sold my apartment in the eagle warehouse for one year ago. $800 psf for a larger coop apartment in better shape with full skyline views and 10 foot ceilings. these guys are asking over $1K psf in a market which i think we can all agree has been “challenging” since i sold last spring. it will only hurt the seller for this to be priced so out of line with what the market will bear. there is no way this goes close to ask, IMHO.
Sorry to be brutal or snarky or whatever you want to call it, but I hate these abominations and wish they would be pulled down and replaced with the low-rise buildings that were there before Good King Moses tried to destroy the neighborhood.
There is a waiting list for a spot in the garage under 75, but you might get lucky and this apt owner might already have one you could take over…
… the wait was upwards of 6 months a while ago (just after Love Lane/College Place closed which might have spiked it) but it might not be so bad now…
I like those townhouses. At least from the outside. How are they on the inside? I could see a whole shag carpet/eames chair/aalto lighting thing going on in on of those. Plus parking! No wonder they are never on the market.
Kris – Sometimes I think my ideal apartment has a pre-war exterior and a post-war interior. Though I do like some nice built-ins and woodwork. I looked at a cute apartment in Prospect Heights this weekend and the (sadly non-functioning) fireplace was stunning. Beautiful woodwork in the living room in general. Nice high ceilings too.
It’s very true that many of the post-war building have bland exteriors at best. But there’s something about a big wall of windows that can overcome that for me. I will, after all, be spending far more time inside the building than outside looking at it.