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Red Herring Prices v. Black Book Prices

Started by fiat_64
about 18 years ago
Posts: 1
Member since: May 2008
Discussion about
I live in a 75-unit building that is undergoing condo conversion. We've already received the red-herring with the list of offering prices. We were told to expect the black book soon. Can the offering prices be raised substantially from those listed in the red-herring? Even for rent-regulated tenants?
Response by West81st
about 18 years ago
Posts: 5564
Member since: Jan 2008

Yes and yes.

The insider prices are probably calculated as a percentage of the outsider prices. Therefore, if the latter go up, so will the former - without regard to whether the occupant of a particular unit is regulated or not.

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Response by UnionSqEast
about 18 years ago
Posts: 1
Member since: May 2008

Similar situation--the Red Herring I received for my building did not specify any "insider price" or discount. Are these Red Herring prices themselves considered "insider prices"? So, do Red Herring prices become null and void once the Black Book is released with new prices?

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Response by West81st
about 18 years ago
Posts: 5564
Member since: Jan 2008

UnionSqEast: Red herring prices are indicative, and are subject to substantial change. (Hint: The prices in the black book are seldom lower.) As for finding the insider prices, I think most plans offer some sort of special price to tenants in residency during the initial, exclusive-rights period. But since those are "as-is" prices, whereas the prices offered to outside buyers often include some degree of renovation, the discount may be illusory.

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