Renting 1 BBP: 'We Would Like Things to be Different'
This weekend’s cover story in the real estate section of the Times is about Brooklyn developers who have started renting units in their condos, with a focus on the hybrid-ization of One Brooklyn Bridge Park, where developer RAL recently began renting some of the unsold inventory. First, the stats: There have been 77 closings at…
This weekend’s cover story in the real estate section of the Times is about Brooklyn developers who have started renting units in their condos, with a focus on the hybrid-ization of One Brooklyn Bridge Park, where developer RAL recently began renting some of the unsold inventory. First, the stats: There have been 77 closings at the building and 26 other units are in contract, leaving 300-some-odd vacancies; for now, RAL is only renting 20 units, and five one-year leases have been inked. Then, there’s the commentary from RAL president Robert Levine, who says stuff like, “This building is not a rental building, it is a condominium,” and “We would like things to be different,” and “We had a vision and it turned out to be exactly what we wanted. And then the world fell apart.” (On this last quote, it’s worth noting that 1BBP went on sale almost a year and a half before “the world fell apart” last September.) Anyhow, the bigger questions the article addresses are, how much of a stigma is it for a condo to rent some units out, and to what extent—if at all—does it push down values? On the first question, an Elliman broker says, “if you start to rent 25 percent of the building or more, it takes on the flavor of a rental,” and on the second question, appraiser-guru Jonathan Miller says that “In the long run, there’s no impairment to value.”
Renters to the Rescue [NY Times]
Rentals, Price Cuts and Loan Extension at 1BBP [Brownstoner]
political statistics? You know- the majority of people in the city used to be renters. There never was this “I’m an owner, I’m better than you” garbage. And that’s what it is- garbage. we can all argue about it but ENY is right- it’s case by case. And I guarantee you the numbers will be 50-50 as to which people take better care of the property they own or rent.
“Again, it does not mean renters cant be as good as owners.” Do you even realize how offensive that sentence is? Try substituting African American or Jew in there, and then Whites. And no- I am not saying anything about racism- I’m just deconstructing the sentence so you can see how it really reads
Ditto what the jackal said.
I can’t believe you are all still arguing over this b.s. OK, I’ll just go ahead and fill you in on the real plot:
Developers can’t sell at the prices they want. Rather than lowering prices to what will sell now, they are renting. As a largely irrelevant subplot, renting affects value. The big picture here is that developers are acting like current market prices are not real. They are acting like all they have to do is put their hands over their ears and say LALALALALAL I CAN’T HEAR YOU for a couple of years and all of a sudden they are going to unload these properties at they prices they want. They aren’t ripping off the band-aid and just accepting that prices have corrected (and are continuing to do so). They are prolonging the pain, and in the process tying up their capital for years on what is essentially a fool’s errand. It’s like creating a Japanese zombie bank. You made a bad bet. Just accept it, sell, take your lumps, and move on. Or rent a depreciating asset and sell for even less in five years. Whatever. Up to you.
Yes, there are plenty of renters who are meticulous, courtious and wonderful tenants, even if they are going to be there for a few months. And yes, there are owners who keep their places like sh-t. But we arent talking about long-timers here – people who bought their place in 1983 or who lived in a rent stabilzied apartment for two decades. We are mainly talking about transient renters and newer buyers IN BUILDINGS – not houses. All I am saying is in that case, a renter who knows they are gone in a few years wont be as mindful when they know its not their property that will depreciate/appreciate compared to an owner who paid big bucks for that same space and will have to sell at some point. Thats why coops have strict subletting rules for gods sake.
Rob – you are way too defensive. Not every post is about you.
DH- so what?
Bxgrl – I am not arguing specifics. Take it up with insurance companies and such. They have things like statistics (both financially and politically).
Again, it does not mean renters cant be as good as owners.
wow that was incoherent – rewrite: large percentage of renters.
Well my parents – who know nothing about brooklyn real estate and are currently looking to buy a condo in a full service building – they refuse to buy in a place that has a large majority of renters.
Rob, it’s the same reason that insurance for a rental car costs more than for your own car.