As buyers’ tastes sway towards anything-goes condos, New York City’s stately co-op buildings have become dinosaurs.
Already, the resale value of co-op apartments is about 30 percent lower than their condo counterparts, according to BrickUnderground. That’s partially because the wealthy (especially foreign investment buyers) are over scrutiny and snootiness. They prefer glass boxes to stuffy pre-wars.
“The ‘Masters of the Universe’ who bought the $20 million to $30 million co-ops on Park Avenue are all financially minded; they come from hedge funds and banking,” high-end broker Adam Modlin of the Modlin Group tells Gotham.”They’re going to realize that their co-ops have not appreciated the same 20 to 30 percent that condos have. When the 60- and 70-year-olds move out of these apartments and they’re bought by 20-, 30-, and 40-year-olds, [these younger buyers] are going to initiate change because their friend has a condo that has gone up 30 percent in three years and the co-op has gone up 4 percent in three years.”
But hard times for co-ops also means relative deals for those who still have a taste for old New York glamour. Ironically, now might be the right time to go co-op. [BU] –Christopher Cameron