Washington Plaza

[jh35]

We are up to 5 apartments in contract at Washington Plaza now. I'm so annoyed that they are waiting until the last minute to get back to us on our group discount request.

Do these people who want a group discount have 100% of the purchase price available to buy their co-op? 

As you were told at the tenant's  meeting, you can NOT get a mortgage in a new co-op building. Banks will only give mortgages to co-op buildings that are 51% sold. I verified this at TD bank.

Having people make bids for their apartment when they can not purchase them encourages the owner and keeps the price high. If the whole thing fails they will then be forced to lower the prices.

[Lilybell]

As you were told at the tenant's  meeting, you can NOT get a mortgage in a new co-op building. Banks will only give mortgages to co-op buildings that are 51% sold. I verified this at TD bank.

jh35, you were misinformed - and TD Bank is not the lender so they know nothing about the deal the owner made with the actual lender (whom we have no choice but to use until the building hits 50%).

These are the facts: The lender is very confident in the complex and is only considering the renovated units towards the 50% goal - they will  consider the building at 50% sold once they sell 28 units. This is not just a theory; it's what I was told directly from the lender and he showed me documentation to prove it. They are providing conventional fixed-rate mortgages at a very competitive rate - I'm already pre-approved and I'm not planning to pay 100% cash for an apartment.

The complex will reach the 50% sold benchmark at about the same time that they reach the "15% bona fide purchaser" benchmark (the 192 units are used for that calculation - they will reach it at 26 units. There are a few rent controlled units that don't count towards the goal).

Part of me wonders if the owner is going to completely blow off our group request and not even bother to reply to it within the 90-day time frame. I think she's confident she can hit the necessary percentages without us. She is under no obligation to reply to our request if she's not interested in negotiating with us. I wouldn't be surprised if she has an investor or two ready to snap up the rent-stabilized units that aren't purchased by the tenants and doesn't give a crap if any of us buy or not.  Obviously, we would have a lot more leverage if the 192 figure was used for the 50% benchmark.

There are now 6 listed as in contract but there are at least three more sales that I know of that aren't shown on the website.

[Simka]

There are now 6 listed as in contract but there are at least three more sales that I know of that aren't shown on the website.

Do you mean the apartments aren't listed on the website, or they're listed but not shown as being in contract?

[Lilybell]

There are now 6 listed as in contract but there are at least three more sales that I know of that aren't shown on the website.

Do you mean the apartments aren't listed on the website, or they're listed but not shown as being in contract?

Hi simka, I mean both!  I am probably going to buy a renovated unit and asked to see some of the apartments with floorplans I like.  I asked about C25 and was told it was sold, but it was never even listed as for sale on the website. C54 is shown as available on the website, but it has both an offer and a backup offer. 

It looks like they updated the website last night because there are a few more sales listed. I cross-checked both RE sites (nuplaza and wplazanyc.com) and see that there are now 9 apartments in contract (including another one of the big 2-bedrooms).  We can add C25 and C54 and one more I know of (but I don't know which exact apartment).  So, at least 12!  They are going to have no issues hitting 50%.

[Simka]

There are now 6 listed as in contract but there are at least three more sales that I know of that aren't shown on the website.

Do you mean the apartments aren't listed on the website, or they're listed but not shown as being in contract?

Hi simka, I mean both!  I am probably going to buy a renovated unit and asked to see some of the apartments with floorplans I like.  I asked about C25 and was told it was sold, but it was never even listed as for sale on the website. C54 is shown as available on the website, but it has both an offer and a backup offer. 

It looks like they updated the website last night because there are a few more sales listed. I cross-checked both RE sites (nuplaza and wplazanyc.com) and see that there are now 9 apartments in contract (including another one of the big 2-bedrooms).  We can add C25 and C54 and one more I know of (but I don't know which exact apartment).  So, at least 12!  They are going to have no issues hitting 50%.

That's good, in terms of buyers getting financing. I wonder if the ones not listed are all tenant purchasers? I suppose it's possible an outsider could buy an apartment not listed on the NuPlace site. I do hope many of the buyers are tenants.

[Lilybell]

The realtor told me that one tenant has purchased a renovated unit.  I think many people are hoping/waiting to hear back from the owner before they make any decisions. Only a week and a half left...

[eddie]

The apartments will sell, but close to half a million for a 1 bedroom with maintenance over $800 is a tough pill to swallow. I just saw a 2bedroom, convertible 3 for $360k with a maintenance of $850. Anyone can put 100k into that apartment and have a showroom apt for the price of a 1bed in this plaza.

I think there are much better deals to be found elsewhere in JH. The renovations are nice, but you can have renovations done yourself and choose all your finishes.

[Simka]

The apartments will sell, but close to half a million for a 1 bedroom with maintenance over $800 is a tough pill to swallow. I just saw a 2bedroom, convertible 3 for $360k with a maintenance of $850. Anyone can put 100k into that apartment and have a showroom apt for the price of a 1bed in this plaza.

I think there are much better deals to be found elsewhere in JH. The renovations are nice, but you can have renovations done yourself and choose all your finishes.

Good point. Some people want a turnkey apartment they can move right into, and if they can pay a higher price and get it, they will. I'd rather buy a cheaper place whose price doesn't include the cost of renovations, because it's almost guaranteed that I will hate something that's been done, especially if it involves granite or laminate flooring or recessed lighting or an open floor plan.

[Lilybell]

The apartments will sell, but close to half a million for a 1 bedroom with maintenance over $800 is a tough pill to swallow.

The 1-bedrooms are selling very quickly at Washington Plaza; it's the expensive two-bedrooms that are taking longer.  There are three different 1-bedroom floor plans that are priced between 375K - 418K and they are getting snapped up right away.  There were multiple offers on the most expensive one-bedroom (going for 444k). There are 24 more renovated apartments that will be listed for sale over the coming weeks. Most of them are 1-bedrooms with one of the aforementioned floor plans.

I wavered back and forth between buying my own apartment and renovating it myself or buying a renovated unit.  The more I think about it, I can't really afford to do the type of gut reno that's being done.  They are going down to the studs and replacing baseboards, moldings, doors, down to the smallest detail. If I did it myself, it would only be a new bathroom/kitchen and I'd have to deal with living in there while the work is being done.

The difference in price for a renovated unit vs. the insider price to buy our own unrenovated unit is only 10% (between 42-45K for most units). There's no way I could do such a comprehensive gut reno for 45K.  If the owner were willing to negotiate the price down it would make more sense to renovate myself, but it doesn't look like that's going to happen.

[eddie]

The apartments will sell, but close to half a million for a 1 bedroom with maintenance over $800 is a tough pill to swallow.

The 1-bedrooms are selling very quickly at Washington Plaza; it's the expensive two-bedrooms that are taking longer.  There are three different 1-bedroom floor plans that are priced between 375K - 418K and they are getting snapped up right away.  There were multiple offers on the most expensive one-bedroom (going for 444k). There are 24 more renovated apartments that will be listed for sale over the coming weeks. Most of them are 1-bedrooms with one of the aforementioned floor plans.

I wavered back and forth between buying my own apartment and renovating it myself or buying a renovated unit.  The more I think about it, I can't really afford to do the type of gut reno that's being done.  They are going down to the studs and replacing baseboards, moldings, doors, down to the smallest detail. If I did it myself, it would only be a new bathroom/kitchen and I'd have to deal with living in there while the work is being done.

The difference in price for a renovated unit vs. the insider price to buy our own unrenovated unit is only 10% (between 42-45K for most units). There's no way I could do such a comprehensive gut reno for 45K.  If the owner were willing to negotiate the price down it would make more sense to renovate myself, but it doesn't look like that's going to happen.

good luck with w/e you decide, but word of advice, don't get tunnel vision and lock yourself into the Plaza. So many more reasonably priced coops in JH with much more reasonable maintenance costs, and if you're going to get an un-renovated unit, well then that really opens up a ton of more options. I think the big sell and the reason people are willing to pay so much and those high maintenances is because like Simka said, some people just like the idea of "turn key". Also the units are sponsor units so they might appeal to people who otherwise, for whatever reason may not pass a board interview. Or investors looking to park cash somewhere. But for someone that actually wants to live there, sponsor units don't provide any value except a higher premium.

remember maintenance will only go up, no matter how much you pay down your mortgage you are almost paying a rent still.

[jh35]

The apartments will sell, but close to half a million for a 1 bedroom with maintenance over $800 is a tough pill to swallow.

remember maintenance will only go up, no matter how much you pay down your mortgage you are almost paying a rent still.

Do not forget about possible assessments. On Sunday, I saw a young child fall of his scooter when he hit the crooked sidewalk near the booth. He smashed his face into the cement. He was wearing a helmet.

The handicap entrance would never pass an inspection because of its angle and the sudden turn. Another building in JH is already being sued over their handicap entrance.

Why pay a premium when there are possible liabilities?

Washington Plaza is a nice building but the prices do not make any sense. If you are an insider, why double your rent when you could just save the extra money?

[Lilybell]

If you are an insider, why double your rent when you could just save the extra money?

Maybe someone who has lived in the building for 30 years would be doubling their rent. If I purchased a renovated unit and put 20% down, my monthly payment (including maintenance) would be $400 a month more than what I currently pay in rent.

[jh35]

If you are an insider, why double your rent when you could just save the extra money?

Maybe someone who has lived in the building for 30 years would be doubling their rent. If I purchased a renovated unit and put 20% down, my monthly payment (including maintenance) would be $400 a month more than what I currently pay in rent.

I have lived in the building for 7 years and if I bought my apartment it would raise what I pay for rent over $1,200.

Lilybell, did you pay the full published price or did they give you a deal? You seem very enthusiastic about the building now, even though in the beginning of this thread you said it was overpriced. You said: "My building is undergoing a coop conversion and the prices they want are ridiculous. They are attempting to get historic district prices (even higher than that, actually) for a non-historic district building with no garden or parking."

Now, you are quick to spread rumors about how many apartments you think are sold and seem to act as a cheerleader for the owners.

[Lilybell]

I haven't purchased a unit; I'm still waiting to see if the owner gets back to us. I wrote the comment in red the day after we received the black book so I was upset about the insider price increase (because I had visions in my head of getting an amazing deal because of the first numbers we were given) and skeptical that the renovations would be done well.  Since then, I have done a lot of research and neighborhood comparison shopping and have changed my mind - I have many reasons for this but due to your accusatory tone I'm feeling less than obligated to explain my thought process. 

I am not spreading rumors about sales - everything I've mentioned here is listed on the owner's website or was told  to me directly by the sales agent.  I was trying to provide as much info as possible so other tenants can make informed decisions.

I know exactly who you are and you are even less charming in person.

[jh35]

I know exactly who you are and you are even less charming in person.

I would never dream of saying something like that to you. I would also not say you have done a good job as a member of the board of the tenant's association.