Page 6 - CooperatorNews NY April 2021

6 COOPERATORNEWS — APRIL 2021 COOPERATORNEWS.COM CooperatorNews.com From COOPERATORNEWS.COM As developers struggle to offload excess condo inventory in an oversaturated market that can Sheik, and Ryan Adams; music scions Theodora and Alexandra Richards (daughters of at least partially stalled at the onset of the coronavirus pandemic, it is widely reported that Rolling Stone Keith); celeb sibs Charlotte and Samantha Ronson; and actors Penn Badgley, investors and mezzanine lenders have swooped in with offers to buy units in bulk. While Wesley Snipes, Judd Nelson, Chris Farley, and Tom Cruise and his then-wife Mimi Rogers. experts say that the steep discounts being proposed render most of these offers DOA, some transactions have gone through; the latest being the bulk sale of 10 units at Gramercy Park’s first began to sell units in earnest—the units at Rutherford were as interesting as their sto- Rutherford Place. The Real Deal notes in its reporting of the sale that Rutherford Place is an outlier among the projects involved in bulk deals, in that it is not one of the estimated 900 new or in-progress are eight simplexes, 50 duplexes, 66 triplexes, and three quadriplexes developments—mostly in Manhattan—that currently include the more than 15,000 unsold perched over others, including sleeping lofts over studios, ceilings vary drastically from 7.6 units across New York, according to real estate data provider Marketproof. Instead, reports TRD, the 10-story building at 305 Second Avenue dates back to 1902, when it was built by none other than banker J.P. Morgan, who at the time intended it to be the bought 10 of these unusual units in a bulk purchase for $18.64 million. That averages to about city’s largest maternity hospital. Eventually it became a general hospital, and in the 1960s a $1.86 million per unit. Compass is listing Mountbatten’s remaining units—the number of drug treatment center. In the 1980s, Winthrop Chamberlin and Barnet Liberman bought the which is unknown—for between $825,000 and $3.195 million, according to property from Beth Israel Medical Center and turned it into a residential condominium with about 127 units. They paid $5.5 million. Initially, the developers—owners of real estate firm Mountbatten, known also for its 1980s Elad Group’s $90 million sale of 70 units at a Hell’s Kitchen condo to Tishman Realty—the conversion of the West Village’s Printing House into condos—opted to rent out most of the largest bulk deal on record. Compared to other, single units in contract at the building, the units to receive related tax benefits. Over the years, according to New York Magazine , tenants bulk price represents a 40.5% discount. Another bulk sale of 8 units at GID Development’s at the building included a sizable list of well-knowns: comedian Dave Chappelle; producer Waterline Square went for $27 million to a South American family, which was a 7% discount, Benny Medina; rapper and producer Sean ‘Diddy’ Combs; musicians David Lee Roth, Dun- According to a New York Times piece from 2006—the year that Chamberlin and Liberman ried residents. “Because of the limitations imposed by its structural origins as a hospital,” the Times describes the building, “no two of the 127 apartments have the same layout. ... There \\\\\\\[sic\\\\\\\]. With some rooms feet to 19 feet—in some cases, in the same room.” Earlier this month, a limited liability company called 305 Second Avenue Mezz Lender TRD. The outlet notes that developers prefer to keep bulk sales like these quiet, lest they indicate distress to the rest of the market. But a few bulk deals have garnered some publicity; namely, according to TRD . n Buying in Bulk—A New Strategy for Condo Purchases Gramercy Park Condo Latest in Trend BY DARCEY GERSTEIN Cities reshape and reinvent themselves regularly and organically. Old buildings become building allows the builders next door to use their roof as a staging area, for example, that roof obsolete for a variety of reasons, and new buildings replace them. Many a four- or five-story structure must be carefully evaluated by engineers beforehand to assure that the added weight tenement has been knocked down to make way for a shiny, new glass condo tower—and of supplies, equipment, and so forth does not pose a risk to the building or its occupants. more often than not, when a building gets razed to build something new in its place, there’s at least one building adjacent to the demolition and new construction site. What if you’re that building? What impact can the demo and subsequent construction have on your property, “Any time there is an existing building next to a construction project—they can be older, even and what can you do to minimize disruption and possible damage? Potential Effects of Construction Next Door Major construction can cause or amplify a variety of potential problems for adjacent prop- erties. The main areas of concern are vibration, cracking, movement, and new or changing all parties involved. The board of directors and manager of the existing building and the load patterns. An adjacent property might experience none of those issues—or one, some, or owner of the new building should start a conversation immediately to share documents about all of them. “Damage can come in many forms,” says Giulia Alimonti, senior architect with CTL- Group, an international engineering and architectural firm with offices in New York, “in- cluding foundation cracking or settlement, building façade movement and cracking. Interior finishes such as drywall and plaster may crack as well. Common types of damage may include airborne debris or over-pressure waves. Ground vibrations may ‘shake’ adjacent structures time (and we all know how long it can take for a building to be completed), Alimonti sug- and, if sufficiently severe, may cause damage and soil settlement.” There are some precautionary moves that can be made to keep tabs on these potential the adjacent site will likely expose parts of your building that are normally not accessible or problems, and head them off before they become serious. Field monitoring can evaluate viewable. “An architect or structural engineer can do an assessment of existing conditions of ground-borne and structural vibrations, measuring their continuing effects during construc- tion. Pre-construction surveys to catalog any existing cracks, followed up with vigilant dy- namic monitoring of those cracks’ response to construction can head off worsening cracking the building and stairwells, a survey of existing conditions, and any deficiencies should be ad- problems. Potential movement, settlement, and rotation of super- or sub-structural elements dressed in a timely manner. Identify all potential hazards and existing conditions.” can also be monitored during this period and work altered or halted to correct any concern- ing developments. Lastly—though certainly no less important—adjacent construction activi- ties can influence the size and distribution of loads on a neighboring structure. If an existing taken to mitigate those problems now. Manhattan is notorious for underground streams and Getting Ahead of the Problem “Risk mitigation affects virtually all construction sites in New York City,” says Alimonti. landmarks, or new buildings, regardless of the age of existing property—there should be steps taken by both owners to minimize the effects of construction on existing structures.” Alimonti continues: “Communication is key—there should be communication between excavation and design. Engineers for the existing building can review the plans and engage in a conversation about what additional measures can be taken to monitor vibrations, provide structural support, etc.” When Construction Gives You Lemons... While no one wants to live with major construction next door for any extended period of gests viewing it less as a huge drag and more as an opportunity. Demolition and excavation of your building while the foundation and exterior walls are exposed,” she says. “The assessment should include all sides of the building. There should be visual assessments, a walk through Alimonti also suggests that surveys should be commissioned to determine if there are any potential groundwater issues that your building might not have been aware of, and steps continued on page 13 Adjacent Construction Risk Management The Building (or Demolition) Next Door BY A J SIDRANSKY