Trump Plaza co-op’s dilemma: big assessment or big rent hike?

Board decision could lead to $1M assessments per unit or sky-high rental reset

TRD New York /
Nov.November 06, 2014 02:32 PM

Soon after the ground beneath Trump Plaza at 167 East 61st Street hit the market, members of the co-op board began weighing whether to pay a steep price for the land or keep paying rising bills to rent in the building.

If the shareholders fork out the $185 million that they have offered for the land, they would be hit with unit assessments that could go as high as $1 million apiece. An owner of a two-bedroom with 440 shares in the corporation, for example, would be charged $1.02 million.

The lease at the 39-story co-op building will reset in 2024, real estate lawyer Adam Leitman Bailey told Bloomberg News.

Several owners in the building contacted Bailey with concerns about the leasehold entering contract, particularly given the high land costs in the city. Douglas Harmon and Adam Spies of Eastdil Secured are representing the landlords, who are listed as Donald S. Ruth and members of the Ruth family, according to property records cited by the website

“Whatever opportunistic investor buys the land will probably be way more aggressive about the rent reset than either an estate or a group of heirs,” real estate attorney Joshua Stein told Bloomberg. “Someone who is buying it, is buying it specifically to squeeze out every last dollar of rent.” [Bloomberg News]Mark Maurer

Related Articles

Adam Leitman Bailey (Credit: iStock)

Adam Leitman Bailey can practice law again

65 East 55th Street and EQ Office CEO Lisa Picard (Credit: Park Avenue Tower and VTS)

Blackstone looks to sell Park Ave Tower for more than $800M

Brett Siegel, Jean Celestin, and Evan Layne with Newmark Knight Frank offices at 125 Park Avenue (Credit: LinkedIn and Google Maps)

Newmark poaches Eastdil Secured sales team

Clockwise from left: Vornado’s Steve Roth and 220 Central Park South, 42 Crosby Street and 15 Commerce Street

These are some of the most notable resi sales in NYC this week

Rudy Giuliani and wife list Palm Beach condo amid nasty divorce

Rudy Giuliani and wife list Palm Beach condo amid nasty divorce

From left: Wells Fargo CEO Timothy Sloan, Eastdil Secured CEO Roy March, Temasek CEO Ho Ching and Guggenheim president Jerry Miller (Credit: Getty Images)

Eastdil finalizes buyout deal with Guggenheim, Singaporean investment firm

Doug Harmon (Credit: Cushman & Wakefield)

How it happened: Doug Harmon and Leona Helmsley

Adam Leitman Bailey suspended from practicing law for 4 months

Adam Leitman Bailey suspended from practicing law for 4 months