Signs of Desperation: UES New Constr. condo unit turned rental!

I dont really know if I see you point here. Lets assume they were paying $6k before mgmt decided to raise it to $6600. Why on earth would they move to spend an ADDITIONAL $1400? I could understand if the point of the article was they were able to get the larger condo for less than $6600, but realistically they could move anywhere (not just this condo) if they wanted to spend MORE money.

Give us a hint. Does it start with Br or Lu?

Say it's 2100 s.f. with a 1.8x ratio of monthly fees = $3780. ($8000 - $3780)*12/$3m = 1.7% - a low cap rate even for this market.

UESBandit: good point. I shouldve explained that they were able to spend up to $8k, wanted additional space if possible, but wouldve stayed in their existing 2 BR if it was priced correctly, which in their view was below $6k.

In other words, it wasnt a money issue for them, but rather where they'd get the best value. I guess the point I was making was really about the New construction unit that was for rent and why.

bardamu: lets just say, you know the UES well.

crescent: very interested in your math. so what youre saying is the owner is not earning much, so they priced it cheaply right? I dont know exactly how much they paid for the unit and will try to find out, but I suspect it was more than $3m. Is 1.8x a std monthly fee ratio?

oh, it could start with 17 or la or ci, or any number of things.

Well, it's probably not worth $3m in this market. My point was simply it's very cheap rent considering the maintenance and the likely mortgage. $8,000 for >2000 square feet is laughably low for a new luxury building. That ratio of 4x is more befitting of an average upper middle class 1-2 bedroom apartment.

The maintenance ratio of 1.8x looks average for the condos I have seen. It actually might be lower for this place if it is 421-a tax abated. WHich of course can only fool you from determining the real value to a renter...

Thanks crescent. The couple just told us they negotiated VERY hard with the owners for this rent. I get the sense that they originally listed the condo for rent at $10-14k/mo, though they didnt tell us explicitly.

It just makes me more convinced that they were desperate to rent it out, given how insanely low this rent is for >2000 sq ft, new construction in prime UES. Its an awesome building.

As you note, there's no way this unit worth $3-4m in this market, which is why there's so many threads here discussing why original purchasers trying everything to back out.

So bardamu has proposed two candidate buildings and sirwinston seems to be confirming it's one of the two. Since no one has yet moved into one, I guess we know it's the other, no?

This could be the apartment (3BR plus alcove - labeled "nook" on the floorplan). There seem to be at least two such combinations: 4GH has closed and 9GH is listed as in contract.
http://www.streeteasy.com/nyc/rental/475768-condo-205-east-85th-street-yorkville-new-york?email=true

If it's Br..., then the building the couple were trying to negotiate lease renewal is Ventura?

upperhome - that would be the best candidate. If so, this is Related losing a rental client to an overstretched buyer in a Related development down the block.

I am unfortunately in a similiar position. I bought a new development condo and have my current coop up for sale but can't seem to find any buyers. Buyers are simply afraid to jump into the market without serious reductions in price even though I priced it appropriately compared to the rest of the market. I can't decide whether to cut my price drastically now to find a buyer or wait and hold until the economy turns around and rent out my new condo. We are near the point where if buyers want to get into the neighborhood before Sept for the good public schools (since they can't afford private ones), they must start purchasing in May so I am going to cross my fingers and hope sales will increase.

dave_nycues, as a prospective buyer about to sign a rental lease...you can't find a buyer since your apt is priced too high. Using other "for sale" apts as your comp makes no sense...they aren't selling either. If you want to sell, price like you mean it...

The Brompton rental parade continues. Today SE added a rental listing for a 2 bedroom (looks from the floorplan like the J line on floors 4-9) asking $8,500/mo. The listing agent's web site already shows the ask reduced to $8,000 as of today. If 3BR plus alcove in a new UES high-end condo is $8,000, per discussion above, I'm not seeing $8,000 for this one.

dave_nycues, you might get the effect you desire, but all sellers know this is busy season, so everyone putting units up now. lots of stats about inventory at multiyr highs and NYT article a few weeks back suggested some new constr buildings recog they need to sell in next few months or theyre in trouble, so times article suggested they were about ready to bring blocks of manhattan condos to auction at 1/2 price. this has been a part of several discussion threads here on streeteasy. bottom line, it looks like prices will take a step function drop during this selling season and why so many of us are sitting it out until at least 2010 or 2011...im happy to dig up the link to the NYT article in case you need it...my wife and i have kids and can easily rent in whatever school district we need to (PS 6, PS 290 etc.), so buying is unnecessary, in our view...sorry you find your circumstances less than desirable and wish you the best...lots of decent people caught up in this mess of a crashing real estate bubble

What are the large one bedrooms looking like?

Seems like LOTS of carnage on the bigger apartment side, AND cheaper 1 bedrooms... but I haven't seen too many luxury one bed listings. Anybody know what thats looking like these days?