Carnegie House Land Lease

The 324 unit carnegie house cooperative building is the ground tenant on the property.

Carnegie house land lease. The land underneath the carnegie house co op located at 100 west 57th street just sold to a group of investors for 285mm and the land underneath the trump plaza co op on east 61st street is currently on the market. I believe the reset is happening 2065. View rent amenities features and contact carnegie house leasing office for a tour. Very competitive pricing for the location and unit sizes.

Between high prices broker s fees monthly maintenance costs property taxes co op boards and building restrictions buying any kind of real estate in new york can be incredibly complex. David werner a borough park investor who has wowed new york city with a series of big buys this year partnered with rubin schron and the cohen family to pay 285 million for the land under 100 west 57th street sources told the real deal. This situation is terrifying for co op unit owners as the only reason why investors would purchase a co op ground lease is to make money on it that is escalating the ground rent as high as possible based on the then existing market price of the land. The purchase price is usually reduced because you re not buying the land.

Currently the building has a studio on the market for just 100 000 and a 1 200 square foot one bedroom unit listed at 299 000. An unusual ownership situation at carnegie house in midtown is undercutting prices and driving residents to sell in droves. Carnegie house is one of about 100 land lease buildings in new york city. Since ground lease rents are typically 6 percent of current market value reports the real deal rising new york real estate prices means the current 4 4 million rent the cooperative pays annually would be 27 million if the rent were to be reset today so what s it going to be in 10 years when the rent is scheduled to be reset.

Saving on the cost of the land may allow you to buy a more expensive home. To appreciate just how good the deals in land lease buildings can be consider the prices at carnegie house located at 100 west 57th street. The land lease on this otherwise nice building will limit any appreciation for buyers. The advantages of a land lease.

Right now the lease is in the millions of dollars per year and 500 800 of monthly maintenance goes to the lessor. In our second item about them in a week a consortium is paying 285 million for the land beneath carnegie house the 324 unit co op at 100 west 57th street.