Back HomeThe Co-Op Competition
Out with the old, in with the new.
After the housing crisis and a surge in development of renovated properties, “many residential buildings in New York [are] rethinking, refurbishing or increasing their offerings in an effort to compete with the thousands of square feet in amenities indigenous to newly constructed buildings” (1).
Ms. Talel, a partner at law firm Stroock & Stroock & Lavan says that “co-ops are now doing what they can do to maintain value and to attract the right kind of purchasers” (1). More buildings, such at the Trump Plaza on Third Avenue and 61st Street are looking into amenities that go above and beyond to add value. The spending budget, in the six figure range, allows for the flexibility to create a duplex gym, with the talk of adding a wine cellar.
Most of the presidents who are on real estate co-op boards are making the decisions coming from a place of competition. The newer buidings that are being developed around the neighborhoods spur on a competitive edge and force existing co-ops to “level up.”
For example, the residents in the Chelsea Landmark on West 25th St “recently asked for — and received — an updated gym, barbecues for the terrace and a room that can be rented for parties” (1). Of course, with new amenities come higher costs to the residences. Some of the more reasonably priced co-ops can be found in the financial district, where not everything has hit “market rate yet.” One of the more recent complexes to hit market rate are The SouthBridge Towers. These co-ops, such at 77 Fulton Street, are in buildings surrounded by renovated high rises. In order to compete, these buildings will too, have to “level up.”
(1) New York Times
(2) Corcoran
