HOTD: 306 Washington Avenue, Two Price Cuts Later
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit…
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit on the high side.” In September, the price was trimmed to $2,100,000 and then another $200,000 was taken off last month to bring the current asking price to $1,900,000. The house was also included on this past weekend’s multi-broker house tour. Think it has a shot at this price?
306 Washington Avenue [Douglas Elliman] GMAP P*Shark
House of the Day: 306 Washington Avenue [Brownstoner]
Aussie – you just don’t get it. But, that’s OK. CMBS stands for Commercial Mortgage Backed Securities – NO resi loans are funded through CMBS. It was just used as an example of where funding costs are these days.
No private label RMBS (residential mortgage back securities) securitizations are being done these days – the ONLY loans that are getting funded are ones that can fit into a Fannie or Freddie deal – and if the deal doesn’t fit into a Fannie or Freddie deal (which commercial JUMBOs don’t), be prepared to pay through the nose – if you can even get a bank to lend you the money.
CMU,
Yeah, I know what you mean. Sadly, prices are so high, most buyers can’t help feeling robbed after paying big bucks and having to be stuck with low rent tenants.
But for this property, it’s pretty clear considering the substantial asking price that most buyers would attempt to evict the tenants and turn the entire house into their own home.
It takes a certain kind of cold hearted individual to go through with this kind of a buying and evicting agenda. Statistically, I don’t think it happens very often, and I’ve never done it myself.
I’ve certainly paid lots of rent regulated tenants to move, but one thing I’ve found is that if the person doesn’t have other options already, they usually won’t take a buyout. And if they have no job and live off welfare or social security alone, it’s impossible.
Where else can a tenant live in NYC dirt cheap with the guaranteed right to have his lease renewed?
Much more reasonable, IB. But you’re still assuming that the only people who want to buy his property are those wanting to “take it over” eventually. If the price were right (and I did say that) it could be a straightforward business deal after calculating ROI.
What bugs me is the automatic assumption that tenants need to be “gotten rid of” when you buy a property. It’s almost universal in these comments. Besides the unfairness of it (the tenant had no say over the sale of his abode,) it’s just shortsighted and shows, yes, an attitude towards people that’s meanspirited and untrustful.
If a tenant (for argument’s sake, not r/c or r/s) is in place, why assume that he’s any worse than one you will find yourself? Do due diligence, of course, but why oust them if they’re ok? I’ve taken over buildings with tenants and not had problems. I will not attribute it to luck.
CMU,
Of course I’m a landlord, and I didn’t say a thing that gives us a bad name.
All my tenants have to do is send an email and the problem is taken care of ASAP.
The bottom line like other posters have mentioned is that the two rent stabbers obviously won’t take reasonable buyouts or the building would be delivered vacant.
I’m all for buying mismanaged multi-family properties cheap that are full of rent stabilized apartments. With a long enough time frame and a little luck, it can be a path to making big money.
Unfortunately, this building is priced much too high for an investor to expect a decent return as the above posters have explained. Also, who the hell wants to live their life having to subsidize the upstair tenants and possibly their children after them? Remember, children of rent stabilized tenants can take over the apartments merely by living in them for two years. If you buy this house, it’s possible that in your lifetime you’ll never take full possession it.
Unless the price is cut in half or close to it one word sums up this property: NEXT!
No shot. This is a super-duper jumbo mortgage. You would have to put 20% down. There are two rent stabilized tenants. And let’s not forget the lovely mansion tax. Instead of supporting two strangers for the rest of their lives, why not just give your money away? I’ll take some. I really would love to sample some of what these home sellers are smoking.
Slick said; AAA CMBS new issuance at trading at 850 over LIBOR currently. If you originated a jumbo loan at 7% today, it would be worth 85 cents out the door. If you can even get one with 25% down, it would cost close to 10%
So you think that Jumbo mortgages are only funded through CMBS issuance and therefore jumbo mortgage rates are 10%. That is not correct I’m afraid.
cmu has hit the nail on the head.
There are certain inalianable truths in NYC housing court, namely:
Landlord: oppressor: bad
renters: victims: good
take it from someone who’s been there: it’s a nightmare. And I was dealing with affluent white tenants. If you’re white and your tenants are minorites, just sign over the title to them, save yourself legal fees.
Ironballs, I sincerely hope you are not a landlord, you would give us all a bad name.
I’ve had tenants for over 20 years. Other than plumbing stoppages, appliance problems, and other issues (which have happened with the SIMILAR frequency in my unit,) I can honestly say there’s been only ONE incident that is “tenant related.” In 20 years.
Maybe I just treat them as human beings unlike the rest of the tenant-haters on this thread.
99lb, your post almost made me weep that there are actualy good landlords around. “karma” is such an unusual word outside my almost-native California!
which is why you do due diligence – yes we might have been lucky but we also interviewed the tenant before buying. Caveat emptor indeed but we tried to mitigate that as much as possible through due diligence.
All I am saying that it is worth looking at properties like this if you are likely to be in them for the long haul and not dismiss them outright.
(and that’s a he not a she! 😉 )