Washington Plaza

[Simka]

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.

One thing I don't think many first-time coop buyers realize is that buying into a newly converted coop is very different from buying into an established coop. For instance, financially it has no track record as a coop—only as a rental building. And if you buy and then want to resell in a couple of years, you could have a problem; if less than 50 percent of the apartments are owner-occupied (meaning there are still a lot of non-purchasing renters), it's likely that buyers will have trouble getting a mortgage. Also, for a number of years, the sponsor will own enough shares that the resident owners may not have much power in running the building. After living in a fairly new conversion before, I wouldn't want to do it again.

[jackinjh]

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.

Simka, does that qualify new buyer as first owner. As a most coop I looked at they allow sublet/rental policy only if you the first owner, else you have to live certain year then allow to rent a year.

Trying to help a friend who looking to buy 1 bedroom or studio in our area to retire in few years, but they would like to be able to rent it out now.


One thing I don't think many first-time coop buyers realize is that buying into a newly converted coop is very different from buying into an established coop. For instance, financially it has no track record as a coop—only as a rental building. And if you buy and then want to resell in a couple of years, you could have a problem; if less than 50 percent of the apartments are owner-occupied (meaning there are still a lot of non-purchasing renters), it's likely that buyers will have trouble getting a mortgage. Also, for a number of years, the sponsor will own enough shares that the resident owners may not have much power in running the building. After living in a fairly new conversion before, I wouldn't want to do it again.

[Lilybell]

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.

Oh please, your entire previous comment was a personal attack and now you're butthurt because I defended myself? I'm not on the board of the tenant's group. I've attended a grand total of two meetings.

[Simka]

Simka, does that qualify new buyer as first owner. As a most coop I looked at they allow sublet/rental policy only if you the first owner, else you have to live certain year then allow to rent a year.

Trying to help a friend who looking to buy 1 bedroom or studio in our area to retire in few years, but they would like to be able to rent it out now.

I don't know about the subletting. Different coops have different policies. I think something like that should be spelled out in the black book, but I'm not sure it's there. (I looked all through the black book to find whether Washington Plaza will have a flip tax and couldn't find it. Somebody told me there isn't one.)

[iqtsarah]

I went to check out few apartments at Washington Plaza a month ago. And I remembered the agent mention you can sublet for (i forget how many years she told me, maybe it was 2 or 4). But after that you can't sublet anymore.

[dssjh]

https://s-media-cache-ak0.pinimg.com/736x/c1/64/40/c16440123484cbe75d4fc87c74e74b48.jpg

[Simka]

Simka, does that qualify new buyer as first owner. As a most coop I looked at they allow sublet/rental policy only if you the first owner, else you have to live certain year then allow to rent a year.

Trying to help a friend who looking to buy 1 bedroom or studio in our area to retire in few years, but they would like to be able to rent it out now.

I don't know about the subletting. Different coops have different policies. I think something like that should be spelled out in the black book, but I'm not sure it's there. (I looked all through the black book to find whether Washington Plaza will have a flip tax and couldn't find it. Somebody told me there isn't one.)

jackinjh, I just looked through the proprietary lease in the black book, and though it mentions subletting, it doesn't go into details about how many times you can do it. One thing I can tell you, though, is that regardless of what they say the subletting policy is, it's subject to revision by the board of directors at any time.

[Simka]

Latest figures posted: There are 14 "executed agreements" for bona fide outside buyers to purchase coops at Washington Plaza. So far there are 0 executed agreements for tenants to buy any. (I wonder if a tenant buying a different apartment is counted as a non-tenant? I imagine so....) I think 14 is about half of the 15 percent necessary for the coop plan to be declared effective.

[Lilybell]

Hi Simka,

You are right - they are only counting tenants who purchase their own apartments as "tenants".  So if a tenant buys a renovated unit instead, they will be treated like everyone else and have to put 20% down (instead of 10%) and pay two month's maintenance at closing (instead of one).

There must have been a flurry of activity after the 90 days were up - I ran into the sales agent putting up signs saying that they extended the sales office hours on the 90th day; I am so curious as to how many tenants made offers.

[Simka]

Hi Simka,

You are right - they are only counting tenants who purchase their own apartments as "tenants".  So if a tenant buys a renovated unit instead, they will be treated like everyone else and have to put 20% down (instead of 10%) and pay two month's maintenance at closing (instead of one).

There must have been a flurry of activity after the 90 days were up - I ran into the sales agent putting up signs saying that they extended the sales office hours on the 90th day; I am so curious as to how many tenants made offers.

I didn't see those signs. What day was the 90th day, the 31st?

[Lilybell]

Yeah, I'm pretty sure it was Monday but there's a slight chance it was Tuesday (I was off both days and can't remember for sure). It was just a piece of paper taped to each lobby door saying they'd be open til 7pm.

[frances]

I was there last weekend, checking out apartments. At that time, the broker told me they're about 40% of the way to being declared effective. They're expecting it to be declared in late July/early August.

[Simka]

I came across a listing for one of the three-bedroom, two-bath apartments on the Times site today, and was surprised to see...REAL PHOTOS! Well, not of the bathroom—that's still the one with the magical Manhattan skyline in the window—but the other pictures looked like actual photographs.

http://www.nytimes.com/real-estate/usa/ny/queens/jackson-heights/homes-for-sale/73-12-35th-avenue-c51/478-5b4aaf59607f5

[Lilybell]

simka, not sure if you heard that the owner has counter-offered with a 20% discount off the outsider price (for current tenants). And they are allowing 5% down instead of 10%. 

I noticed they are doing an open house for the big three-bedroom this weekend (the same one from the NY Times article).

[hum@njukebox1]

I came across a listing for one of the three-bedroom, two-bath apartments on the Times site today, and was surprised to see...REAL PHOTOS! Well, not of the bathroom—that's still the one with the magical Manhattan skyline in the window—but the other pictures looked like actual photographs.

http://www.nytimes.com/real-estate/usa/ny/queens/jackson-heights/homes-for-sale/73-12-35th-avenue-c51/478-5b4aaf59607f5

I could live there.  Can anyone loan (ie. give) me $750,000?