Boxed out: Supply chain, energy crises rock real estate
When bricks began falling from the facade of 2 Fifth Avenue at the northwest corner of Washington Square Park, residents knew the building needed repair, but the extent and scope of the building’s disrepair is causing issues within the co-op. New York Magazine reports that the 343-unit building will need a $40 million renovation, costing each resident as much as $300,000, to permanently remedy the problem. Each terrace must be replaced, support beams and aging ties need mending, and a costly scaffolding structure must be erected to begin repair. Predictably, that’s affecting the once-powerful co-op board. The building replaced the existing board with a full set of new members last month, after none of the old members ran for re-election — including the former president of the board, Marcus & Millichap broker Adelaide Polsinelli, who said many residents have “a personal vendetta” against her. Well aware that the value of their property plummets as word of the construction spreads day by day, residents are nervous that they’ll be unable to get a good return on their home should they refuse to pay the construction fees. Eight units are currently on the market, but New York Magazine said brokers expect many more to hit the market in the coming weeks. [NY Mag]
