Battery Park gets battered
Wall Street's bedroom community feels pain of ground leases and finance fallout October 13, 2009 04:30PM By Alison Gregor
Heather Stein of Brown Harris Stevens, who owns an apartment in Battery Park City, says that the market there has been difficult
From the October issue: Despite its prime waterfront location and its disproportionate amount of cutting-edge "green" architecture, Battery Park City is getting slammed by the downturn more than many other Manhattan neighborhoods. Stephen and Mary Lacoff, for instance, have been trying to sell their 1,158-square-foot two-bedroom at 2 South End Avenue for more than a year now. Despite dropping the asking price from $1.385 million to $999,000, they've received no offers. The apartment -- which, like everything in Battery Park City, is in a land-lease building -- has some of the higher ground rents in the area, contributing to common charges of $2,003 a month, or $1.74 a square foot. "There has been some intermittent interest, but no offers," Stephen Lacoff said. "What I'm taking from that is there's not a huge demand." more
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Comments
Anonymous
High maintenance and a ground lease building is doomsday. How is even $850 psf worthwhile when there are so many other options out there. I feel bad for them but they need to hold onto this asset for more time
Comment #1 Posted By: Anonymous 10/13/09
Anonymous
shrewd buyers should be scooping up assets here in anticipation of the eventual renegotiation of the ground lease,and the reduction in rents. market is reflecting the current situation, and not pricing in any positive changes. sheldon silver has been a staunch supporter for bpc, and it is doubtful this will change anytime soon. ironically, out of the financial meltdown, there might arise more favorable common charges for residents.
Comment #2 Posted By: Anonymous 10/13/09
Anonymous
The City and state thinks of BPC as a cash cow to fund all their other wasteful agendas. It is absolutely a crime how much is charged for the land leases. and they want to raise it! The Cove Club are unsellable at any price since they have a new lease. Be warned, a new downward spiril (and potential future slum) awaits.......
Comment #3 Posted By: Anonymous 10/14/09
Anonymous
#1: What makes you think the city could possibly even consider a reduction in the ground lease? It isn't the multi-billion-dollar deficit at the state and city level! BPC is going to turn into a zombie borough full of unsellable condos with maintenance/ground lease monthlies that exceed their market rents. Buh-bye, BPC... it was nice while it lasted...
Comment #4 Posted By: Anonymous 10/14/09
Anonymous
Christine Quinn help us we are drowning down here in fees. We are not all rich ! these are small condos - we are affordable housing (private with no subsidies). Help.
Comment #5 Posted By: Anonymous 10/14/09
Anonymous
Who would want to live above crushed milk containers anyway?
Comment #6 Posted By: Anonymous 10/14/09
Anonymous
Major defaults on the way...........Miami on the Hudson
Comment #7 Posted By: Anonymous 10/14/09
Anonymous
BPC is horrible. No reason to move there. These condos are virtually worthless bc of ground lease and common charges. Not sure what the initial attraction was anyway
Comment #8 Posted By: Anonymous 10/14/09
Anonymous
"despite reducing the asking price from $1.395MM to $999,000"- come on! is this serious
Comment #9 Posted By: Anonymous 10/14/09
Anonymous
what a bunch of fools...impossible to even respond to such thoughtless gibberish.
Comment #10 Posted By: Anonymous 10/14/09
Anonymous
by the way,the cove has the worst land lease in bpc, and always has. thus, its price/sq foot has always been at a discount to the city average. this isnt something new. its the reason why the area has traded at a discount to the rest of the city. importantly, the newer buildings have superior land lease structures. moreover, the money used by the bpca goes towards bpc plus providing for affordable housing citywide - not towards funding a litany of state projects. moreover, sheldon shilver is already heavily involved in negotiations to lower land leases. similar death sentences were said about bpc post 9/11. taxes are elevated but arguably best public schools in the city in the area. newest ps/is k-8 school (all green) to open next september. writers above need to get their facts straight before doing what they do best - propagate misinformation.
Comment #11 Posted By: Anonymous 10/14/09
Anonymous
yes 11 and the state only made the lease worse for the Cove Club during the renogation. what makes you think the other south cove buildings will do any better? even with Silver. It make no sense to make BPC unaffordable by charging taxes to subsidize others in NYC. Pay your way!!
Comment #12 Posted By: Anonymous 10/15/09
Anonymous
number 8 , the water and city views are great, the parks are beautiful............few sketchy vagrants, convenient commute, good schools. that said, the expenses are ridiculous - have to move to Jersey once you breed...........and lose ALL the revenue from real people who work for a living and don't ask the govt for everything.
Comment #13 Posted By: Anonymous 10/15/09