The co-op board at the Trump Plaza on East 61st Street and Third Avenue agreed to pay $185 million to purchase the land under the tower — a move that could be bad news for some of the building’s less affluent residents.
The owners of the apartment will be responsible for paying for the purchase through assessments, according to the Wall Street Journal. With rising land prices, residents will have to fork out upwards of $1 million — and more in some cases.
Some of the building’s owners applauded the deal, noting that failure to buy the land would result in a large hike in maintenance payments. But a number of the tower’s residents say they don’t have the money to pay the assessment. Indeed, a group of 15 shareholders are considering suing the condo board to get the decision changed, according to the newspaper.
Boards of other NYC co-ops that sit on leased land will likely have to grapple with the same issue as prices continue to escalate, Massey Knakal Realty Service chairman Bob Knakal told the newspaper. “This is an epidemic that is going to impact a significant number of co-ops.” [WSJ] — Claire Moses