AFTER BIG PURCHASES, LANDLORDS COULD TURN UWS RENTALS INTO CONDOS
498 West End Avenue, which was just sold for $52.5 million.
With the high demand for pre-war condo and co-op apartments on the Upper West Side, real estate companies are always trying to buy rental properties that can be turned into co-op or condo apartments and sold at a nice premium. Owners of the Apthorp have tried that tactic with mixed success.
Two recent transactions show that trend isn’t going anywhere.
The Hermitage, at 41 West 72nd Street, has already become a condo building, but many of the people still in the building are renting at regulated rates (rent-controlled or rent-stabilized). A company called Manhattan Residential led by Shai Shustik just bought the 40 remaining rentals for $11.6 million with the intention of negotiating with the renters to get them to leave, the Real Deal reported. Shustik thinks the units are worth $36 to $38 million.The one and two bedroom units could be combined to make larger apartments.
“We have a very successful track record. We’ll go in and speak to these people and really negotiate with them,” Shustik told The Real Deal.
Also, Samson Management recently bought the rental building at 498 West End Avenue at 84th Street in a “quiet (unadvertised) sale” for $52.5 million. Samson didn’t respond to our request for comment, but the folks who handled the deal make it clear that the building was an attractive buy because it can be converted into a co-op or condo from a rental.
“The trend of converting rental buildings of this type into to coops or condos made this property exceptionally attractive to perspective buyers,” said a release from real estate company Fenwick Keats, which handled the sale.
It certainly sounds like the kind of place that will sell quickly.
“Built in 1911, the 12 story building’s original apartment layouts ranged in size from 8, 7, and 6 rooms, each with a large entry foyer and service entrance. The design ensures that all rooms feature exterior exposures with no interior courtyard. Above is an historic photo of the building.
Images via Fenwick Keats.
if this is a trend, it would help others to know where this trend leads. the west side rag, with its neighborly views and news might consider revealing (anonymously) what the going rate for ‘please-move-out’ bribes is.
obviously every case is different, but imagine if people shared information, how much better off renters would be if/when it comes time to negoitiate. it might even put a damper on the rapidity of this conversion business.
my guess is that everyone is low-balled. let’s raise the stakes.
Great idea Geoff! Thanks.
buyout on a stableized rental
10years ago was $100-200 k