Trump Plaza’s $185M land deal could force some residents out

A number of owners say they don't have the cash to pay assessment

New York /
Nov.November 13, 2014 01:00 PM

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


Related Articles

arrow_forward_ios
85 Jay Street in Dumbo and 515 West 29th Street in Chelsea (Photos via Winick, SCDA Architects)
Here are the new developments offering the most buyer incentives
Here are the new developments offering the most buyer incentives
Assemblyman N. Nick Perry and Sen. Brian Kavanagh (Getty, iStock, NY State Assembly)
New bill would force co-op boards to explain rejections
New bill would force co-op boards to explain rejections
James Whelan, Stuart Saft and Senator Liz Krueger (Whelan by Evan Gutierrez, Kruger via NY Senate, iStock) 
Legislators accidentally propose huge tax hike for co-ops
Legislators accidentally propose huge tax hike for co-ops
328 Sackett Street was the most expensive property this week. (Elliman)
Brooklyn luxury condo contracts catch up to townhouses
Brooklyn luxury condo contracts catch up to townhouses
(Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Condo, co-op boards mull vaccine mandates for building workers
Condo, co-op boards mull vaccine mandates for building workers
17 West 54th Street and Stuart Froum (Google Maps, Linkedin)
Renovation of stately co-op pits gum surgeon against board
Renovation of stately co-op pits gum surgeon against board
Guo Wengui and the Sherry-Netherland penthouse at 781 Fifth Avenue (Photos via Wikipedia Commons; Getty Images and Douglas Elliman)
Ensconced in the penthouse and entangled in lawsuits
Ensconced in the penthouse and entangled in lawsuits
(iStock)
Manhattan home sales experience record decline
Manhattan home sales experience record decline
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...