A Properties Project Development In NYC

41 West 96 St, New York, NY

Posted By on June 16, 2012 in Hotels |

41 West 96 St, New York, NY

This is perhaps the most rewarding deal we ever did –rewarding in terms of doing good for others. And it happened a long time ago. 41 West 96th Street, NY NY was a rent stabilized apartment building with about 60 units. At the time, the tenants were primarily teachers, social workers and other such people who had no real net worth and no real estate sophistication. The owner of the building was getting old and wasn’t making much money from the building. So he decided to convert the building to a coop and offer the tenants insider prices — $20,000 for one bedroom units and $25,000 for two bedroom units. At that time, the value of these units, if they were not under rent stabilization, was about three times the insider price. The tenants knew that they were unschooled in real estate and feared that the landlord was trying to take advantage of them. They asked us come to a meeting and advise them. We didn’t pull our punches. We told them that this was the biggest financial opportunity they would ever have. They should approve the deal (a requirement of the State Attorney General to make the offering effective) and beg, borrow or steal the money to buy their apartments, And so they did. The new owners asked us to run the board, and we did. We instituted a 15% flip tax applied to profits on sales of units. We pointed the brick; replaced all windows, put in a new boiler, spruced up the lobby and elevator and put on a new roof. Everything went well from then on. Today the $25,000 apartments sell for a $1,000,000 or more, the coop’s financial situation is strong and the building is in great shape. The financial windfall to these tenants of modest means made a big difference, for the better, in their lives and in some cases, the lives of their children. Conclusion: It’s a beautiful thing when you can use your professional expertise to do good for others.