Press Reports


Recent Articles

See More See Less

2018

Show Press Hide Press
12.9.18
12.8.18
12.7.18
12.7.18
12.7.18
12.7.18
12.7.18
12.6.18
12.6.18
12.5.18
12.5.18
12.3.18
12.3.18
12.1.18
12.1.18
12.1.18
NAR vs. the naysayers
The Real Deal
11.30.18
11.29.18
11.29.18
11.29.18
11.27.18
11.23.18
11.23.18
11.23.18
Send in the Stagers
The New York Times
11.21.18
11.21.18
11.20.18
11.19.18
11.17.18
11.17.18
11.16.18
11.16.18
11.16.18
11.16.18
11.13.18
11.11.18
11.10.18
11.9.18
11.9.18
11.9.18
11.9.18
11.8.18
11.8.18
11.8.18
11.8.18
11.7.18
11.6.18
11.6.18
11.4.18
11.2.18
11.2.18
11.2.18
11.2.18
11.2.18
11.2.18
11.1.18
11.1.18
10.31.18
10.31.18
10.31.18
10.29.18
10.29.18
10.27.18
10.26.18
DONE DEALS: Harlem block buster
Real Estate Weekly
10.26.18
10.26.18
10.26.18
10.25.18
10.25.18
10.24.18
10.24.18
10.22.18
10.19.18
10.19.18
10.19.18
10.19.18
10.19.18
10.18.18
10.18.18
10.18.18
10.18.18
10.18.18
10.17.18
10.17.18
10.17.18
10.17.18
10.16.18
10.16.18
10.15.18
10.15.18
10.12.18
10.12.18
10.12.18
10.11.18
10.10.18
10.10.18
10.10.18
10.10.18
10.9.18
10.8.18
10.8.18
10.6.18
10.5.18
Done Deals: Asked and Answered
Real Estate Weekly
10.5.18
10.4.18
10.4.18
10.4.18
10.4.18
10.3.18
10.3.18
10.3.18
10.3.18
10.2.18
10.2.18
10.1.18
10.1.18
STYLE RETURNS TO NEWSSTANDS WITH A SUPERHERO NUMBER
Il Corriere Della Sera Italian Men's Magazine
10.1.18
9.30.18
9.30.18
9.29.18
9.28.18
9.28.18
9.28.18
9.27.18
9.27.18
9.26.18
9.25.18
9.25.18
9.25.18
9.21.18
9.21.18
9.21.18
9.21.18
9.20.18
9.20.18
9.20.18
9.19.18
9.19.18
9.19.18
Done Deals
Real Estate Weekly
9.19.18
Done Deals
Real Estate Weekly
9.18.18
9.17.18
9.17.18
9.15.18
9.15.18
New Listings
Real Estate Weekly
9.15.18
New Listings
Real Estate Weekly
9.14.18
9.14.18
9.13.18
9.13.18
9.13.18
9.13.18
9.13.18
9.13.18
9.13.18
9.13.18
9.13.18
9.13.18
9.12.18
9.12.18
Ready For His Close-Up
Cottages & Gardens
9.12.18
9.8.18
9.8.18
9.7.18
9.7.18
9.7.18
9.7.18
9.6.18
9.6.18
9.5.18
9.4.18
9.4.18
How to Invest in Luxury Real Estate
U.S. News and World Report
9.3.18
9.3.18
9.2.18
9.2.18
9.2.18
9.1.18
9.1.18
9.1.18
9.1.18
9.1.18
8.30.18
8.30.18
8.29.18
8.29.18
8.27.18
8.27.18
8.24.18
8.24.18
8.24.18
8.23.18
8.22.18
8.21.18
8.21.18
8.19.18
8.18.18
8.17.18
8.17.18
8.16.18
8.15.18
On the Market in New York City
The New York Times
8.15.18
8.15.18
8.14.18
8.13.18
8.13.18
8.13.18
8.12.18
8.11.18
8.11.18
8.10.18
8.10.18
8.9.18
8.8.18
8.8.18
8.7.18
8.7.18
8.7.18
8.5.18
8.4.18
8.4.18
8.2.18
8.2.18
8.2.18
How to Glow from Head to Toe!
ABC Morning Blend
8.1.18
8.1.18
8.1.18
8.1.18
8.1.18
8.1.18
8.1.18
8.1.18
8.1.18
7.30.18
7.29.18
7.28.18
7.28.18
7.25.18
7.25.18
7.25.18
7.22.18
7.20.18
7.20.18
7.20.18
7.19.18
7.19.18
On the Market
The New York Times
7.19.18
7.18.18
7.18.18
7.18.18
7.17.18
7.13.18
7.13.18
7.12.18
7.12.18
7.11.18
7.11.18
7.10.18
7.9.18
7.6.18
The Rise of the Single Female Homeowner
US News and World Report
7.5.18
7.5.18
7.5.18
7.3.18
7.2.18
7.2.18
7.2.18
7.1.18
No longer New Yorkers
The Real Deal
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.29.18
6.28.18
6.27.18
6.27.18
6.27.18
6.27.18
New Listings
Real Estate Weekly
6.27.18
6.26.18
6.26.18
6.26.18
6.26.18
6.25.18
6.22.18
6.22.18
6.21.18
6.21.18
6.19.18
6.15.18
6.15.18
6.14.18
6.13.18
6.13.18
6.13.18
New Listings
Real Estate Weekly
6.13.18
6.12.18
6.12.18
The Guide to First Time Homebuyers
U.S. News & World Report
6.11.18
6.8.18
6.8.18
6.8.18
6.6.18
6.6.18
6.6.18
6.4.18
5.29.18
5.29.18
5.29.18
5.29.18
5.3.18
4.19.18
4.17.18
3.27.18
3.22.18
3.16.18
3.16.18
3.14.18
3.13.18
2.25.18
See More See Less

2017

Show Press Hide Press
10.16.17
10.15.17
10.12.17
10.4.17
8.22.17
8.22.17
8.22.17
8.22.17
8.12.17
7.21.17
7.14.17
7.7.17
7.7.17
7.6.17
7.6.17
7.6.17
7.6.17
Congratulations (Again), Wendy!
Wall Street Journal
7.5.17
6.28.17
6.27.17
6.20.17
6.14.17
6.13.17
Warburg And Wallack Partner
CityBizList NYC
6.12.17
6.9.17
6.8.17
6.8.17
6.8.17
6.7.17
5.23.17
5.19.17
5.18.17
5.18.17
5.17.17
5.17.17
5.12.17
5.10.17
5.9.17
5.4.17
4.23.17
4.21.17
4.21.17
4.20.17
4.19.17
4.18.17
4.18.17
4.18.17
4.17.17
4.17.17
4.14.17
4.12.17
4.7.17
4.1.17
3.10.17
3.10.17
Prewar Is So Last Year
New York Times
3.2.17
3.2.17
2.21.17
2.7.17
2.6.17
2.2.17
1.31.17
1.24.17
1.20.17
On the Market
The New York Times
1.11.17
1.5.17
1.4.17
1.1.17
1.1.17
See More See Less

2016

Show Press Hide Press
12.29.16
12.13.16
12.13.16
12.6.16
12.1.16
11.30.16
11.28.16
11.27.16
11.22.16
11.18.16
11.18.16
11.9.16
11.4.16
On the Market
The New York Times
11.4.16
10.31.16
10.31.16
10.30.16
10.28.16
10.7.16
On the Market
The New York Times
10.4.16
9.30.16
9.25.16
9.23.16
9.19.16
A Water Skier Seeks Higher Ground
The Wall Street Journal
9.13.16
9.9.16
Where to Live? Ask an App
The New York Times
9.1.16
8.5.16
8.2.16
8.2.16
7.27.16
7.21.16
7.19.16
Kowalczuk and Compton join Warburg Realty
New York Real Estate Journal
7.11.16
7.1.16
6.24.16
Once and Always a New Yorker
The New York Times
6.16.16
Dream Homes
New York Post
6.16.16
6.10.16
Industrial Elegance in SoHo
The New York Times
6.1.16
6.1.16
Living Large in Manhattan
CASTLES Magazine
6.1.16
5.26.16
5.26.16
5.25.16
5.17.16
5.16.16
5.13.16
5.13.16
Priced Out of My Childhood Home
The New York Times
5.6.16
The Golden Mean
Metropolitan Magazine
5.6.16
5.6.16
Featured Property: 150 Reade Street
Metropolitan Magazine
5.6.16
Soiree at 150 Charles
Metropolitan Magazine
5.6.16
Best in the West: 150 Charles, M9
Metropolitan Magazine
5.6.16
5.1.16
5.1.16
5.1.16
4.13.16
4.12.16
4.11.16
4.8.16
4.8.16
4.6.16
4.6.16
4.5.16
4.1.16
4.1.16
4.1.16
4.1.16
4.1.16
4.1.16
4.1.16
3.31.16
3.31.16
3.30.16
3.30.16
New Listing: 30 West Street
Real Estate Weekly
3.28.16
3.25.16
Fusco joins Warburg Realty
New York Real Estate Journal
3.23.16
Who’s News: Mary Anne Fusco
Real Estate Weekly
3.23.16
New Listing: 39 Vestry Street
Real Estate Weekly
3.17.16
Dream Homes
New York Post
3.16.16
3.15.16
3.10.16
3.10.16
Dream Homes
New York Post
3.8.16
3.8.16
3.7.16
3.1.16
3.1.16
NYC Premier Properties
Luxury Listings NYC
3.1.16
Deeds & Dont’s
New York Cottages & Gardens
2.26.16
Executive Moves
Crain's
2.24.16
Sugar Hill condos hit market
Real Estate Weekly
2.18.16
2.17.16
New Listing: 475 Park Avenue
Real Estate Weekly
2.17.16
2.17.16
2.12.16
2.12.16
2.11.16
2.10.16
2.9.16
2.5.16
2.5.16
2.5.16
Big Ticket
The New York Times
2.3.16
2.3.16
2.1.16
2.1.16
1.29.16
1.27.16
1.22.16
The Art of Home Staging
The New York Times
1.20.16
Unfailingly Vibrant in The West Village
Private Air Luxury Homes
1.15.16
1.15.16
1.13.16
1.12.16
1.10.16
Something about a quick deal
Luxury Listings NYC
1.10.16
Premier Properties
Luxury Listings NYC
1.10.16
Premier Properties
Luxury Listings NYC
1.8.16
1.6.16
1.5.16
1.5.16
1.4.16
1.1.16
The interest rate upshot
The Real Deal
1.1.16
See More See Less

2015

Show Press Hide Press
12.23.15
12.22.15
12.22.15
12.21.15
12.21.15
12.18.15
On the Market
The New York Times
12.18.15
12.10.15
12.10.15
12.10.15
12.1.15
Haber inks a book deal
The Real Deal
12.1.15
12.1.15
12.1.15
11.30.15
11.27.15
11.25.15
11.25.15
11.24.15
11.18.15
Symposium
Metropolita
11.18.15
New Listings
Real Estate Weekly
11.17.15
11.13.15
11.12.15
11.11.15
11.9.15
11.9.15
11.4.15
11.3.15
11.3.15
11.3.15
11.3.15
11.2.15
11.2.15
11.1.15
11.1.15
11.1.15
10.28.15
10.25.15
On the Market in New York City
The New York Times
10.23.15
10.22.15
10.22.15
10.21.15
10.21.15
10.20.15
10.16.15
10.14.15
10.12.15
10.6.15
10.6.15
10.2.15
10.1.15
In their words…
The Real Deal
10.1.15
9.30.15
9.23.15
9.22.15
9.14.15
9.11.15
9.11.15
9.9.15
9.3.15
9.3.15
9.2.15
9.1.15
8.28.15
8.21.15
8.21.15
8.21.15
8.21.15
8.20.15
8.18.15
8.18.15
8.14.15
8.13.15
8.13.15
8.11.15
8.7.15
8.7.15
8.7.15
8.5.15
8.4.15
8.1.15
8.1.15
Win now, decide later
The Real Deal
7.28.15
7.27.15
7.24.15
7.23.15
7.21.15
7.20.15
7.13.15
7.12.15
7.8.15
7.7.15
7.6.15
7.6.15
7.5.15
7.3.15
7.1.15
7.1.15
7.1.15
7.1.15
7.1.15
6.29.15
6.28.15
6.26.15
6.25.15
Fishman joins Warburg Realty
New York Real Estate Journal
6.25.15
6.24.15
6.23.15
6.22.15
6.22.15
6.19.15
6.18.15
6.18.15
6.17.15
6.17.15
6.17.15
6.17.15
6.16.15
6.16.15
6.16.15
6.12.15
6.12.15
6.12.15
6.9.15
6.5.15
6.5.15
6.5.15
6.3.15
6.3.15
6.3.15
6.3.15
6.2.15
6.1.15
6.1.15
5.30.15
5.29.15
5.28.15
5.28.15
5.27.15
5.27.15
5.26.15
Home Prices Continue to Climb
Wall Street Journal
5.21.15
$21.5 million Manhattan townhouse is a steal?
CNBC Secret Lives of the Super Rich
5.20.15
5.18.15
5.18.15
5.18.15
5.16.15
5.15.15
5.15.15
5.15.15
5.14.15
5.8.15
5.4.15
5.1.15
5.1.15
5.1.15
5.1.15
5.1.15
5.1.15
Manhattan Market Watch: Moving Tips
Mann Report Residential
5.1.15
5.1.15
4.30.15
4.30.15
4.28.15
4.24.15
4.22.15
4.21.15
4.16.15
4.15.15
4.14.15
4.13.15
4.12.15
4.12.15
4.3.15
4.3.15
4.3.15
4.2.15
4.1.15
4.1.15
4.1.15
4.1.15
3.20.15
3.19.15
3.17.15
Lauren Bacall’s Apartment
Top Ten Real Estate Deals
3.13.15
3.12.15
3.3.15
We Hear…
New York Post
3.3.15
3.3.15
3.2.15
3.1.15
EXTRA! EXTRA! READ ALL ABOUT IT IN 2015
Mann Report Residential
3.1.15
3.1.15
2.26.15
2.25.15
2.20.15
On The Market In New York City
The New York Times
2.19.15
2.17.15
2.11.15
2.5.15
2.5.15
2.3.15
2.2.15
2.2.15
Fixer-uppers gain appeal
The Real Deal
2.1.15
2.1.15
1.30.15
1.29.15
1.25.15
1.16.15
1.16.15
1.12.15
1.7.15
1.7.15
1.6.15
1.6.15
1.6.15
1.5.15
See More See Less

2014

Show Press Hide Press
12.29.14
12.29.14
12.26.14
On the Market: Sutton Place
The New York Times
12.23.14
12.17.14
12.1.14
Prime Rates
Gotham
11.26.14
11.24.14
11.14.14
11.12.14
11.11.14
11.6.14
Houses of the Week
New York Post
11.5.14
11.1.14
11.1.14
10.31.14
10.31.14
10.31.14
10.24.14
10.24.14
10.20.14
10.17.14
10.15.14
10.14.14
10.9.14
10.1.14
10.1.14
10.1.14
9.20.14
9.19.14
9.10.14
9.10.14
9.4.14
9.1.14
Doubling Down On Cuomo
The Real Deal
8.26.14
8.23.14
8.22.14
8.8.14
8.8.14
8.6.14
8.1.14
7.28.14
7.23.14
7.14.14
7.9.14
7.3.14
7.2.14
7.1.14
7.1.14
7.1.14
7.1.14
7.1.14
6.30.14
6.24.14
6.13.14
6.4.14
6.1.14
5.30.14
5.21.14
5.21.14
5.16.14
5.16.14
5.6.14
Profile: CLAIRE GROOME
New York Family
5.1.14
4.20.14
4.16.14
4.9.14
4.7.14
Dads of Real Estate
New York Family Magazine
4.7.14
4.6.14
4.1.14
3.30.14
3.28.14
3.26.14
3.25.14
3.25.14
3.25.14
3.12.14
Sales Updates – Harlem
The Real Deal
3.10.14
3.10.14
3.1.14
3.1.14
2.26.14
New Listings: Beekman
Brokers Weekly
2.20.14
2.14.14
2.5.14
2.1.14
2.1.14
1.29.14
1.29.14
1.29.14
1.29.14
1.29.14
1.27.14
1.14.14
1.14.14
1.3.14
1.3.14
1.1.14
See More See Less

2013

Show Press Hide Press
12.30.13
12.19.13
12.4.13
Gotta get gund
New York Post
11.26.13
11.26.13
11.15.13
11.15.13
11.12.13
11.8.13
11.6.13
10.31.13
10.30.13
10.27.13
10.25.13
10.21.13
10.16.13
10.11.13
10.7.13
10.7.13
Park Manhattan is Sold Out!
Mann Report Residential
10.1.13
10.1.13
10.1.13
Sales in the City – Summer 2013
Residency NY Magazine
10.1.13
Sales in the City – Fall 2013
Residency NY Magazine
9.27.13
9.21.13
9.19.13
9.12.13
9.11.13
9.11.13
9.10.13
9.9.13
9.1.13
8.27.13
8.27.13
8.26.13
8.19.13
8.19.13
8.18.13
8.1.13
EVERYONE IN THE POOL!
Mann Report Residential
8.1.13
8.1.13
7.18.13
7.8.13
7.2.13
7.1.13
6.23.13
6.21.13
6.9.13
6.4.13
6.2.13
5.31.13
5.23.13
5.19.13
On the Market: Kips Bay Co-op
The New York Times
5.14.13
5.9.13
5.8.13
5.1.13
5.1.13
4.30.13
4.18.13
4.10.13
4.8.13
4.8.13
4.4.13
4.1.13
4.1.13
4.1.13
3.23.13
3.18.13
3.17.13
3.7.13
Dream Homes
New York Post
3.5.13
3.1.13
3.1.13
2.26.13
2.22.13
Houses of the Week
New York Post
2.22.13
2.13.13
Properties of the Month
Avenue Magazine
2.12.13
2.11.13
2.8.13
Dear Owner: Please Sell
The New York Times
2.5.13
2.4.13
2.4.13
2.1.13
2.1.13
2.1.13
Warburg Honors Top Agents of 2012
Mann Report Residential
2.1.13
1.31.13
1.15.13
1.1.13
1.1.13
1.1.13
1.1.13
1.1.13
1.1.13
See More See Less

2012

Show Press Hide Press
12.31.12
12.23.12
12.21.12
12.11.12
12.6.12
Who’s News
Brokers Weekly
12.4.12
11.27.12
11.26.12
11.1.12
10.10.12
Who’s News
Real Estate Weekly
10.1.12
10.1.12
Just Sold!
New York Post
10.1.12
9.24.12
9.12.12
9.12.12
9.4.12
8.24.12
8.21.12
8.20.12
8.9.12
8.8.12
8.4.12
8.2.12
8.1.12
8.1.12
Alicia Corpening Joins Warburg Realty
Mann Report Residential
7.19.12
Dream Homes
New York Post
7.9.12
7.1.12
6.22.12
6.21.12
Houses of the Week
New York Post
6.14.12
6.13.12
6.8.12
6.8.12
6.1.12
5.18.12
5.17.12
Dream Homes
New York Post
5.15.12
5.15.12
5.9.12
5.4.12
5.2.12
5.1.12
Pricey Co-ops Find Buyers
The Wall Street Journal
5.1.12
5.1.12
5.1.12
4.1.12
3.25.12
3.24.12
3.16.12
Have a Drink, Buy Some Art, Get a Condo
New Construction Manhattan
3.11.12
House of the Week
New York Post
3.8.12
3.1.12
3.1.12
3.1.12
2.28.12
Dream Homes
New York Post
2.26.12
2.22.12
2.2.12
2.2.12
2.1.12
1.22.12
1.18.12
1.4.12
1.1.12
See More See Less

2011

Show Press Hide Press
12.31.11
12.29.11
2011: The Year of the Turndown
The New York Times
12.22.11
12.16.11
12.7.11
12.5.11
12.2.11
12.1.11
Dream Homes
New York Post
11.23.11
Should You Buy a House?
Go Girl Finance
11.22.11
11.21.11
11.1.11
10.31.11
10.28.11
10.28.11
10.21.11
10.12.11
Celebrity Real Estate
Epoch Times
10.1.11
9.23.11
9.23.11
9.22.11
Sightings
New York Post
9.21.11
9.12.11
Bahamas’ Albany Continues to Grow
World Property Channel
9.1.11
Manhattan Market Watch: A FINE ROMANCE
Mann Report Residential
8.30.11
Living on the Park
Promenade
8.3.11
8.1.11
7.24.11
7.8.11
Trio Seeking Second-Time Chelsea Charm
The Wall Street Journal
6.27.11
6.14.11
6.14.11
6.14.11
6.5.11
5.27.11
5.26.11
5.23.11
5.12.11
Houses of the Week
New York Post
5.12.11
Emerging Neighborhoods
New York Times - Homes Magazine
5.10.11
5.8.11
5.1.11
5.1.11
4.28.11
4.12.11
4.6.11
4.6.11
4.6.11
4.1.11
4.1.11
3.20.11
3.17.11
3.15.11
3.14.11
3.10.11
3.8.11
3.1.11
3.1.11
3.1.11
Moving On Up
New York Family
2.28.11
Q&A with Deborah Lupard
Tribeca Citizen
2.27.11
2.22.11
On the Market
The New York Times
2.13.11
2.9.11
Uptown Upturn
New York Magazine
2.7.11
2.4.11
2.4.11
2.2.11
2.1.11
2.1.11
1.26.11
1.21.11
1.21.11
1.20.11
Ellington on the Park
Harlem Bespoke
1.19.11
1.14.11
1.6.11
1.3.11
1.1.11
1.1.11
What to expect this year
The Real Deal
See More See Less

2010

Show Press Hide Press
12.14.10
12.1.10
11.1.10
10.31.10
10.28.10
10.14.10
9.10.10
9.3.10
Flip-Flopping on Flip Taxes
The New York Times
9.1.10
9.1.10
8.24.10
8.13.10
8.11.10
8.2.10
8.1.10
8.1.10
7.26.10
7.20.10
7.16.10
7.15.10
Houses of the Week
New York Post
7.2.10
6.25.10
Some Condos Avoid Shoals
The Wall Street Journal
6.23.10
New Appraisal Rules Irk Some Brokers
The Wall Street Journal
6.20.10
Caught in the Web
The New York Times
6.1.10
Manhattan Market Watch: ON NEGOTIATING
Mann Report Residential
5.27.10
5.23.10
5.23.10
5.9.10
5.7.10
5.6.10
5.1.10
4.29.10
4.28.10
4.16.10
4.12.10
4.12.10
4.12.10
4.9.10
4.2.10
4.2.10
4.2.10
Time to relist?
The Real Deal
4.1.10
4.1.10
3.29.10
3.19.10
3.17.10
3.9.10
Real Brokers of NYC
Brokers Weekly
3.5.10

Manhattan Market Watch : CONSIDERING GROUND LEASE CO-OPS

April 1st 2010

Mann Report Residential

By Shirley Hackel

Recently I was hired by the executors of an estate to sell an apartment in a ground lease building on the Upper East Side.  We’ve cleaned and staged the property, but as of this writing, we’ve chosen to wait before putting the unit on the market because there is too much uncertainty surrounding the renewal of the lease which expires June 30, 2010.  I’ve been in this business since 1980, have sold in several landlease buildings in the past, but I’ve never heard of an instance where the co-op board and landlord waited until the 11th hour before coming to terms on a leasehold extension

“That’s a reckless tactic,” says attorney Dennis Greenstein who specializes in co-op and condo law.  “I’d have to read the actual landlease document to see what options are available to the co-op, but in theory, upon the expiration of the lease, it’s very likely that the shareholders’ tenancy will end, and their equity could cease to exist.”  Greenstein characterizes ownership in a leasehold as “a diminishing asset.”  As you move up in the years of the lease term and if no provisions have been made to extend the lease, then the property’s value actually depreciates.  If the lease is allowed to expire, the landlord can take the property back, and the condo or co-op would no longer exist.  The shareholders would revert to being renters and would lose their equity.  Could a landlord force tenants out of their homes?  That’s a very thorny question according to the attorneys I’ve surveyed.

A ground lease co-op or condop is one where the underlying land is owned by a landlord and is leased to the cooperative or condop which pays rent to the landowner.  Each leasehold situation is different, and each is governed by the lease agreement which spells out how much rent is to be paid and for how long—usually 50-99 years.  The document also contains conditions for extending the lease and for increasing the rent at specified intervals and may also include a provision to purchase the land.  Usually, the rent is calculated as a percentage of the property’s appraised value.  If land values go up, increases will follow when the rent is readjusted along with corresponding increases in each unit’s maintenance fees.

There’s more uncertainty for apartment owners in ground lease buildings and also fewer tax advantages than for unit owners in fee simple co-ops.  When the corporation owns the land, shareholders can deduct that portion of their maintenance that represents the taxes paid on the building as well as the interest paid on the building’s underlying mortgage.  In a landlease building, the portion of the maintenance used to pay the ground rent is not tax deductible.

It’s also more complicated to obtain financing in ground lease buildings because of the associated risk that a landowner might decide to sell the land or not renew the lease.  My bank sources say lenders generally want to see about 40 years left on the lease term.  Similarly, it’s more difficult for a ground lease building to borrow money itself for any capital improvements, because lenders usually want the mortgage secured by both the structure and the land.

In the case of the co-op apartment owned by the estate that has hired me, there’s a dispute between the landlord and the shareholders about the value of the land and the term for the lease renewal—which is not a big surprise.  The landlord says the land is worth more than the shareholders’ estimate, and the landlord will offer a 30 year extension, while the shareholders want a 99 year renewal.  In all probability, this particular case will go to arbitration, and whatever the outcome, the shareholders will have to pay additional fees to attorneys, consultants and perhaps even bankers.

Ground lease apartments are not for everyone.  However because of the uncertainties and limited tax benefits, apartments in landlease buildings cost considerably less than similar units in fee simple properties.  Taxes are also less because the landowner pays these.

My colleague Susan Abrams, a shareholder herself at the ground lease co-op Tower East on 72nd Street who has sold 13 apartments in the building over the years, says, “You get substantially more for considerably less in a landlease building.  You get to live in a grander apartment than you could otherwise afford, but you have to be comfortable paying higher monthly maintenance.”  In Abrams’ estimation, prices for comparable apartments in fee simple buildings are at least 30% higher.  For the apartment that she is currently listing at Tower East, she’s looking for a buyer with a high income who will be comfortable paying more in maintenance while giving up less liquid assets because of a significantly discounted price.

In the end, it’s really all about making informed decisions.  It’s critical to understand the terms and conditions of a ground lease document.  What are the provisions for extensions?  How are rent increases to be calculated over the term of the lease?  Are increases tied to market appraisals or to regular escalation?  How stable are the building’s financials?  How healthy is the reserve fund?

Reset Password

Start an account to create alerts and save your searches and more...

Get notified when new listings match your saved searches.
Save listings and get updated of any changes in price, status and new open houses.
Hide listings that aren't for you so you don't have to see them over and over again.
Get recommendations and stay up-to-date with your dashboard.

Start an account to create alerts and save your searches and more...

Get notified when new listings match your saved searches.
Save listings and get updated of any changes in price, status and new open houses.
Hide listings that aren't for you so you don't have to see them over and over again.
Get recommendations and stay up-to-date with your dashboard.

Sign in instantly with Facebook or Google!

Or sign up the old fashioned way