Co-op of the Day: 96 Schermerhorn Street, PH-L
This penthouse at 96 Schermerhorn Street just hit the market and initially struck us as a pretty good deal. The rooms in the duplex apartment are pretty small but together add up to over 1,000 square feet; throw in the terrace and the views, however, and the asking price of $550,000 looks low, right? But…
This penthouse at 96 Schermerhorn Street just hit the market and initially struck us as a pretty good deal. The rooms in the duplex apartment are pretty small but together add up to over 1,000 square feet; throw in the terrace and the views, however, and the asking price of $550,000 looks low, right? But here’s the catch: The monthly maintenance is $2,031. Ouch.
96 Schermerhorn Street, PH-L [Corcoran] GMAP P*Shark
How well run could it be to have a 2,000 dollar maintenance and since when does the fact that banks find financials attractive make a mortgage prudent? I think the fact that lenders found certain lending practices “attractive” is what caused the global financial system to teeter on the edge of destruction. I am sorry but there is something wrong with that picture. The tax situation is something else but I would guess that this is not about tax. It is about a very screwed up mortgage.
Donatella;
This building happens to be a very well-run 25+-year-old coop with financials that banks deem attractive.
The tax situation for cooperatives is insane. The fact that a relatively small coop apartment is paying at least, if not more than, twice what a $2MM+ home (with or without a rental unit) pays is unjust. This coop owner effectively subsidizes the owners of the multimillion dollar homes in the Heights.
I can only imagine what will happen with all the new condos once the abatements go away.
When you buy a coop, you get shares in a corporation and you have a proprietary lease which gives you the right to live in the unit you are “buying”. With a coop, once you become infactuated with an apartment, one’s job is to sit down and read every sentence in the company’s financials, including the details of the underlying mortgage. I suspect with this building, the slickster developers saddled the building with close to 100% debt on a value way above market, sucking every last bit of equity out of the underlying property for themselves. Without seeing the financials, I would guess that the buyer’s “equity” in the underlying building will be a share of massive debt. Then on top of that add your own mortgage. Yummy. Then on top of that, you are a coop and you get to make decisions as part of a commune. Here’s my advice, run for the hills. Interesting that when you compare the economics of that bs with owning a building, its nuts. Owning a building comes with all the hassles of home ownership and even though you are responsible for dealing with the maintenance, the economics and the control are vastly superior. And the taxes. Shhh….
The parking lot is under the dorm and the side entrance from Boerum is right beneath the back wall of 96. They get noise and car exhaust fumes.
“I guess a female apartment would have high maintenance.” (Tara)
heehee
There is nothing under the building (no parking lot). Real estate taxes are about 25% of the maintenance… so the city is getting about $6K a year for this.
Never would I set foot on a terrace that far up. Vertigo city.
There is a psychological click that happens to me from living on the top floor of a building. But here – no way.
I used to live up the street in one of the 3 townhouses. It was formerly a building that belonged to Brooklyn College (I think- could have been another college). Place has nearly always been full- but I had no idea it was that expensive. And when they put up the Bklyn Law Dorm, I am sure it was not a plus. Cut off a lot of views, there is an underground garage now right behind and under the building. And right next to Boerum Place- which is noisy.
I’ve met plenty of high maintenance males, trust me.