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4 apts on 64th St in Manhattan - under $1 mil

Yes, you read this right. 4 apartments on 64th Street off Central Park West for under $1 million. Market
value over $2 million, that's more than 50% off. 2 One BR's, 2 Studio's, all sold only as package, all
cash.

I think it's a great way to buy 4 apartments for less than $1 mil in Manhattan. Current value is $2.1 mil (based on sq footage and Manhattan prices). This is if all apartments were vacant and on the market.

Each apartment could become available anytime and most likely they won't all become available at the same time.

Question is: do you have $1 million cash and can you afford to shell out another $2,200 per month until the 1st apt becomes available? once the 1st apt becomes available, the rent should cover expenses. but this is hard to predict as to when it will happen (could be next year or 10 years from now).

At the very least, this is interesting to think about.

Draw back: all rented (rent controlled tenants).
Upside: Great Future Potential (legacy)

							Sq	FREE
Location	Apt #		Rent	Maintenance	NET	shares	Footage	Market Value

Rear Facing	2F	1 Bedrm	$ 299.48	$ 869.88	-$570	215	675	$ 650,000.00
Front Facing	3B	1 Bedrm	$ 286.62	$ 987.36	-$701	244	675	$ 675,000.00
Rear Facing	5D	Studio	$ 223.22	$ 646.80	-$424	160	375	$ 375,000.00
Front Facing	8A	Studio	$ 206.89	$ 736.56	-$530	182	375	$ 400,000.00

			$1,016.21		-$2,224	801	2,100	$2,100,000.00

Posted by Peter Nikic - Pleasantville, NY on 07/11/2008 01:08 PM

Comments (14)

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14 Comments on 4 apts on 64th St in Manhattan - under $1 mil

JUL

2008

Peter - you are right about the downside but for the right person what a bargain. that is a tremendous price. The problem is not knowing when it will open up. I wish you good luck with this it could be a diamond in the rough- Have a great weekend!

Barbara, This is like a 1 million dollar CD, you just don't know when it will mature. I think in 22 years, this investment will have a face value of $8 million, not a bad investment.

Peter: Nice investment for the right person! I hope these all sell for you soon!

Peter, thanks, yes it could be.

Peter - With cash opportunities comes along, so are you considering adding this to your personal portfolio?

JUL

2008

Jennifer, let's buy it together ;-) you put up the $mil and I'll manage and cover all the negative cash flow :-) in about 21 years, we'll have a $7 mil all cash investment ($3 mil for me, $3 mil for you + you get back your original $mil:-)

ready?

$300 a month for rent in Manhattan??? How long have these units been rented? I'm guessing forever. I do think that's a great deal though.

Nancy, thanks. this is the injustice of rent control. though the tenant is paying $300 per month, the expenses for maintenance alone is 3 times that. the only person that benefits is the rentor, many others wind up making the difference.

For an apartment to be under rent control, the tenant (or their lawful successor such as a family member, spouse, or adult lifetime partner) must have been living in that apartment continuously since before July 1, 1971.

JUL

2008

Peter, Are these units in a coop or condo? Do you represent the sponsor? Usually the board or an investor will pay these people to move. My late aunt was in a 3 bedroom on the upper east side that convereted to a coop years ago. It didn't make sense for her to buy it at the time because the rent was so low. The maintenance alone is more than double her rent. The apartment is worth more than a million. She got $100,000 to move.

Unfortunately many New Yorkers in rent controlled and rent stabalized apartment feel it is an entitlement. There are many wealthy people in these apartments who will never move. Once the stabalized apartments reach $2000 per month and the tenant makes over $175,000 2 years in a row it becomes market rate. Because NYC was so bad in the 70's they gave away fabulous apartments for life.

It really depends on who is currently living in these apartments how old they are. I couldn't find any building on west 64th with these for sale. Are they not listed?

I'm assuming if it's a coop the sponsor would tranfer unsold shares and the units would still be considered unsold shares exempt from board approval and sublet policies.

Mitchell, they're coops. the tenants are older and buyouts are possible. I don't beleive they're listed anywhere.

Would they still be considered unsold shares or sponsor apartments? Do you know what the sublet policy is? Will the coop allow the apartment to be rented indefinitely after the rent controlled tenant moves out?

JUL

2008

Mitchell, they are unsold shares and yes, they can be re-rented.

JUL

2008

Hi Peter,
That surprises me, I did not think there were any in that area under 1M. I would think investors would be knocking your door down for these.

Cynthia, yes this is very cheap, but there's a catch. you need all the money available in cash and be prepared to sustain monthly losses (not knowing how long). Thank you.

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