Page 7 - The NY Cooperator September 2019

COOPERATOR.COM THE COOPERATOR — SEPTEMBER 2019 7 ROSENWACH TANK THE FIRST NAME IN QUALITY CEDAR WOOD TANKS WE ARE CERTIFIED and IT MATTERS! 718.729.4900 43-02 Ditmars Boulevard, 2nd Fl., Astoria, NY 11105 www.rosenwachgroup.com Rosenwach is proud to announce that Rosenwach’s tanks are certified to NSF/ANSI 61 by NSF International, a leading global independent public health and safety organization. NSF/ANSI 61 addresses crucial aspects of drinking water system components such as whether contaminants that leach or migrate from the product/material into the drinking water are below acceptable levels in finished waters. To receive certification, Rosenwach Tank submitted product samples to NSF that underwent rigorous testing to recognized standards, and agreed to manufacturing facility audits and periodic retesting to verify continued conformance to the standards. The NSF mark is our customers’ assurance that our prod- uct has been tested by one of the most respected indepen- dent certification organizations. Only products bearing the NSF mark are certified. One factor affecting developers’ de- cision to build rentals rather than con- dominiums is purely economic. The long-term profit from rentals is simply higher than from condominiums. Sever- al factors are at play here, including tax considerations upon sale of the units, and how they are treated under federal income tax rules – as well as the lack of serious disparity between market rents and rents for affordable housing. Wen- groff points out that they are nearly the same, encouraging developers to build rental housing for long-term hold and investment. The Co-op Market There is indeed a market for co-op apartments and resales in the Bronx – a fact that may come as a surprise to many. Co-op City, located in the northeast part of the borough, is one of the largest and most successful co-op communities in the country. There are many other co- op buildings along Pelham Parkway and in the Norwood section of the north Bronx adjacent to the east side of Van Cortlandt Park. In addition, the Bronx is home to the largest collection of Art Deco apartment buildings in the world, many of the located in a designated his- toric district that runs from 149th Street to 167th Street between the Grand Con- course and Walton Avenue. Ariela Heilman is an associate broker with real estate firm Halstead and has lived in a co-op building in the land- mark district for the past 13 years. She says there was a glimmer of the market taking off in the early 2000s – but then the Great Recession hit, and that slowed things down substantially. The result was that nearly everything that’s been built has been affordable rental housing rather than more speculative condomin- ium development. Heilman describes the co-op mar- ket in the district as strong and healthy, though. “The typical buyers are first- time buyers, empty nesters, and Euro- peans,” she says. “They don’t carry the aversion to the Bronx many New York- ers have.” One of the controlling forces in co-op sales in this sub-market are the financial requirements boards maintain for prospective buyers, and the restric- tions placed on unit owners. In the latter case, she explains, the ability to sublet an apartment is severely limited. These limitations are a result of banking poli- cies and lender requirements. “Banks have tight rules relative to income and cash-on-hand requirements for unit loans. Boards have to enforce the same rules. In addition, lenders holding un- derlying permanent mortgages on the cial entry point for condominium own- co-op properties want to see owners in ership is substantially higher than for borough. As Heilman points out, “You residence, which severely limits sublet- ting options.” The end result is that if you stretched as thin as possible to get into Parkchester \[in the east Bronx \] but it’s buy in these buildings, you pretty much a co-op. “Many would prefer to be in a a one-hour subway ride into the city. It’s have to live there – no purchasing with condo, as they are more flexible, but the only about 20 minutes from 161st Street,” the intent of turning the unit into an in- vestment property. Broker Deborah Miller, also with Hal- stead, notes that one other factor influ- encing the co-op/condo choice process in the Bronx is the differential in prices in the ‘boogie-down Bronx’ real estate between co-ops and condos. The finan- co-ops. Often, buyers in this market are can find a reasonably-priced condo at cost of getting in—about 30% more—is in the heart of the Art Deco Historic Dis- a heavy lift.” Her advice is to get on the trict. ownership ladder and work your way up as your financial profile evolves. All considered, things are looking up market. It’s only a matter of time before city-wide growth catches up with the n AJ Sidransky is a staff writer at The Co- operator, and a published novelist. WHAT’S HAPPENING... continued from page 6