The Real Deal New York

At this Village co-op, maintenance fees are close to zero

Residents at 99 Bank see windfall from retail leases

March 02, 2015 02:30PM

99Bank

99 Bank Street

In an era of skyrocketing retail costs, the residents of a West Village co-op are experiencing an unexpected windfall.

Co-ops with big retail tenants on the ground floors of their buildings are using the revenue from those leases to pay for things such as doormen, property taxes and heat, according to the New York Times.

At 99 Bank Street on the corner of Bank and Hudson streets, a grocery store and a restaurant are shouldering most of the building’s monthly maintenance costs. And at 451 Broome Street, two apparel retailers have signed on, according to the newspaper.

A letter sent to the residents at 99 Bank Street, as cited by the newspaper, stated, that retail tenants Missing Ingredient and Mrs. Green’s would pay “the bulk of your maintenance.”

Monthly co-op costs in Manhattan average more than $2,000 per month, according to the newspaper, which may give other co-ops an incentive to bring in top-drawer retailers as leases expire.

Still, there’s no guarantee that big name tenants — Blockbuster and RadioShack are prime examples — are a sure bet. The same letter to the residents of 99 Bank stated that “the amount of the maintenance reduction will depend upon the continued rental income and may also reflect other budgetary needs of the co-op such as capital improvements.” [NYT] — Claire Moses

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