2001 Dec/Jan
2001 Dec/Jan Vol. 21, No. 1
Focus on...Building-Wide Finacial Strategies
Central Park North and Harlem
Real estate brokers and developers have seen sales of condos and co-ops on Central Park North and in Harlem take off in the past year. On Christmas Eve of 1999, Saadia Lynch, a broker with Bellmarc Realty, a residential real estate brokerage firm in Manhattan, was asked to sell a two-bedroom, one-and-a-half bathroom beauty at 1800 Adam Clayton Powell, Jr. Boulevard, in a pre-war building overlooking Central Park. The apartment sold for $305,000. A year later, Lynch is selling another apartment in the same line for $100,000 more. This supply of desirable properties, mingled with an expansive market, is turning Central Park North and Harlem into one of Manhattan’s biggest boomtowns; one where it is still possible for average New Yorkers to live in relatively large, attractive homes. Read More
Love Thy Neighbor... As Best You Can
It’s 3:30 in the morning and your upstairs neighbor can’t seem to get enough of the new Cher album. It’s not just the techno beat that’s getting to you, it’s the volume. It’s making your china collection rattle in its hutch and your teeth hum until you just can’t take it anymore. You’re a patient person, but after a week, it’s just too much. You have a problem neighbor and you aren’t alone. Read More
Reduce Variable (and Fixed) Costs
All board members should be involved in the budgeting process of their building. However, board members come from a wide array of professional backgrounds, and often lack experience managing large budgets and do not know how to effectively cut costs. Andrew Hoffman, principal of Hoffman Management in Manhattan, and Ted Procas, chairman of the board of the Association of Riverdale Cooperatives and executive board member of the Council of New York Cooperatives and Condominiums (CNYC), offer many insights into ways that costs can be reduced–not just the costs that are traditionally considered variable, such as supplies and maintenance, but also costs that most people consider fixed, such as labor and taxes. In fact, Hoffman says, "There is no real difference between variable and fixed expenses." Read More
Sponsor Problems?
The numerous, rapid conversions of the 1980s resulted in many cases of sponsor default in the early ‘90s. But as the number of building conversions slowed in the ‘90s, it seems that potential conflict between shareholders and the sponsor may have disappeared as well. Today however, though no longer as abundant, problems still occur, and shareholders and board members alike need to be aware of difficulties they may face when sharing the building with a sponsor. Read More
The Finance Officer
A good treasurer is crucial to the well-being of any co-op or condo. Unfortunately, the position is, without a doubt, one of the most challenging offices to hold. Carl M. Cesarano, CPA, a partner with Cesarano & Khan PC in Rego Park, Queens, says treasurers are the eyes and ears of the co-op or condo. "The treasurer should be the watchdog of the entity that collects cash and pays bills." They should be familiar with the expenses of their building, in addition to any miscellaneous expenses that arise and should keep watch over how the managing agent spends the residents’ money. In turn, the treasurer organizes the information and must keep the board informed as to the building’s financial standing so that this information can be disseminated to the shareholders or owners when necessary. Read More
A Second Chance
While the real estate market today is going strong, there are still buildings facing financial troubles. Many of these are victims of the collapsed real estate market of the late 1980s and early ‘90s. The market may have dropped after the conversion of a building, and subsequently the sponsor was not able to charge the rents necessary to meet his maintenance obligations. Eventually the sponsor defaults. It’s then up to the co-op to make the payments, but they are in no better position than the sponsor was. With no cash to refurbish empty units for rental or to do even basic building repairs, the situation worsens. It can be almost impossible for a co-op to pull itself up by its bootstraps once it’s headed for foreclosure. Read More
