Page 6 - NY Cooperator December 2019

6 THE COOPERATOR —
DECEMBER 2019
COOPERATOR.COM
Over the past two decades, New Yorkers have become increasingly used to seeing tall, reflec-
tive, glass residential towers rise over the cityscape, even in neighborhoods that have been bas-
tions of the world-class architecture that gives the City its rich design history. Consider the two
glass towers that stand like sentinels facing each other on Broadway near 100th street on Man-
hattan's Upper West Side. They seem at odds with the pre-war, Beaux-Arts and Neo-classical
masonry façades that line this historic neighborhood. Yet, they reflect architectural trends that
really aren't so different from the ones that favored earlier styles that dominated our cityscape
in decades past.
Why Glass?
In short, because people like it—particularly at the high end of the market. The abundant
light and feeling of space that floor-to-ceiling windows afford can make a real difference in how
residents experience their environment. But compared to masonry —and contrary to what you
might think —glass curtain wall construction can be expensive to build and maintain. Howard
Zimmerman, principal of Howard L. Zimmerman Architects, PC in Manhattan, points out
that “building footprints are smaller today. Therefore, rooms are smaller. In order for them not
to feel so small and enclosed, developers go with floor-to-ceiling glass at a greater cost to make
the rooms look larger than they are. If they were ‘old-school’ masonry with punched windows,
they would be really claustrophobic.”
Zimmerman says that while there's no real trend away from glass façades toward masonry at
the moment, he expects that trend may well pick up over the next couple of years as compliance
with energy efficiency rules becomes a factor. “What’s being built now,” he says, “was designed
and planned a year or two ago, before the most recent wave of energy laws and regulations were
enacted. What’s in the planning stages now will consider cost effectiveness more closely. And
masonry is generally more economical.”
Alan Gaynor, a partner at Boddewyn Gaynor Architects, also located in Manhattan, says
he does see a bit of drift away from glass already happening. He says façade design may also
depend on other factors, like building size and what segment of the market the property is built
for. “Smaller brick-and-mortar buildings with punched windows are often more ‘classically’
designed. Then there are some large properties like 15 Central Park West that have a classical
façade design that blends into the existing front façades of the neighborhood.” The decision on
Cooperator.com From
While not usually considered an amenity per se, an elegantly appointed lobby can be
both a draw for prospective purchasers and a welcoming space for residents in co-op and
condominium communities. While some communities furnish their lobbies and entry
areas like lavish semi-public living rooms, others prefer a more minimal, or even stark
aesthetic. To what extent should a lobby be furnished, and what kind of furniture is most
appropriate? What’s behind those choices, and how does the look of a lobby really impact
a building community?
The Basic Options
Marilyn Z. Sygrove, president of Sygrove Associates Design Group, based in Manhat-
tan, has been designing lobby spaces since 1983. She says that doorman buildings virtually
always have furnished lobbies; if a building doesn’t have furnishings in its common areas,
it’s most often smaller, with an unattended lobby.
A spartan lobby may not be an indication that the building can’t afford furniture; rather,
it may simply be that the shareholders or unit owners who call the building home prefer to
maintain the area as a transitional space that people move through, rather than congregat-
ing or hanging out in at length.
“My experience is that in non-doorman buildings, the residents may want less furni-
ture,” says Sygrove. One of the reasons for that is theft – especially in a building without se-
Lobby Decor
To Furnish, or Not to Furnish?
BY A J SIDRANSKY
The benchmark for calculating capital gains on your unit is determining your cost
basis in the unit. The cost basis for co-op and condominium units is calculated on the
original purchase price of the shares or unit, plus capital improvements made during
the entire period that the asset is held.
Eliot Lebenhart, a partner at Woodbury, New York-based accounting firm KVLSM,
explains how capital gains on a primary residence—including co-ops and condos —
are calculated under the current tax law: “The sales price, minus commissions and
other closing costs, minus your basis purchase price plus capital improvements. The
difference between the two is your capital gain.” Lebenhart says that “If this is a pri-
mary residence, and you are single and have lived in the unit for two out of the last five
years, you can exclude $250,000 from capital gains taxes. If you are married and filing
jointly, the exclusion goes up to $500,000.”
Keeping up your property now will clearly help you keep taxes down later. So say
you’re single and paid $400,000 for your apartment 15 years ago, and then sold it today
for $900,000, incurring $100,000 worth of closing costs. Your basis would be $900,000
minus that $100,000. Your cost basis in the property would be $400,000; $900,000
minus $100,000, minus the original $400,000 purchase price. Your exclusion would be
$250,000, resulting in a taxable gain of $150,000. At the current 15% your capital gains
tax would be $22,500.
Now, using the same example, let’s say that you put a new kitchen and bathroom
twice during the 15 years you called the unit home, at a cost of $30,000 each time,
for a total of $60,000 in capital improvements. You would deduct that $60,000 from
your basis as well — so $900,000 minus $100,000 in closing costs, and minus $60,000
in capital improvements, for a taxable basis of $340,000, resulting in taxable gain of
$90,000 and a tax of $13,500—a savings of $9,000.
What Constitutes a Capital Improvement?
The question is actually ‘What constitutes a capital improvement for the purposes
of calculating capital gains taxes?’ According to houselogic.com, “A capital improve-
ment increases your home’s value, while a non-eligible repair just returns something
Capital Gains and Capital
Improvements
When Does a Repair Become a Renovation?
BY A J SIDRANSKY
Glass vs. Masonry
Which Façade Reigns Supreme?
BY COOPER SMITH
COOPERATOR.COM
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curity cameras scanning the lobby, “The furniture can disappear,” she says. “When some-
one moves in or out, you don’t want the couch from the lobby moving with them.” Other
reasons include discouraging activities that could damage the space or its contents (think
diaper-changing, eating, kids roughhousing, and so forth), and loitering.
Susan Lauren, the principal of Susan Lauren Interior Design on Manhattan’s Upper
West Side, concurs. “I’ve never encountered a building that didn’t want any furniture,” she
says of her 20-plus years in the business, “but many say they want less furniture, because
they don’t want people hanging around in the lobby. In these cases, we will use a console
instead of a bench to fill the space, which won’t encourage sitting.” Lauren also says she
often gets direction from boards that while they do want seating, they don’t want ‘com-
fortable’ seating – so they’ll request benches rather than a comfy sectional sofa with an
ottoman. Regardless, says Lauren, boards and residents want furniture that’s durable and
attractive. To get the most for your money, “Always go with the hospitality quality pieces
and fabrics.”
Another option, says Sygrove, is decorative pieces – which could be artwork, floral ar-
rangements, or other points of interest to liven up the space. “A beautiful Deco mirror in
an Art Deco period building can be very impactful.” Murals and other artwork can also
complete a space without necessarily filling it with furniture. “The space shouldn’t look
austere or empty. I’ve been told a well-appointed lobby can increase apartment values by
as much as ten percent.”
Real World Values
Joanna Mayfield Marks is a licensed broker with Halstead Properties in their Park
Slope, Brooklyn, office. “In many buildings out in the Flatbush and Ditmas sections of
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