The
Boulevard
2373 Broadway
New York, NY
THE STORY:
Turned a desirable site with a low cost basis on the Upper West Side into a 355 unit, full service "Condop" with an underground supermarket and subway at the corner.
355 RESIDENCES
20 STORIES
BUILT 1989
KEY DETAILS
Total Cost: $120 Million
Total Gross Sq Ft: 480,000
USES:
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415,000 sq. ft of luxury “Condop” apartments
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25,000 sq. ft of retail
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40,000 sq. ft of parking below grade
AMENITIES:
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Health club and pool, sun deck, racquetball and squash facilities, parking garage
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Supermarket built below grade
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Subway station at the corner
PROJECT CHALLENGES
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Assemblage required acquisition of an adjacent lost encumbered by a 20-year lease to a garage operator. The garage buyout would increase the cost basis of the development.
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Plan had to account for the higher cost basis, leaving the residential development rights intact, and produce an additional revenue stream utilizing the existing building envelope.
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Market research indicated that the size of the down payment was an issue for potential buyers
OUR SOLUTION
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Completed assemblage by creating an incentive package for the garage owner that compensated him for lost parking revenue and ultimately relocating him into a new, larger garage.
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Utilized a "Condop" structure that created two separate condominiums and allowed the developer to structure two separate financial packages. The residential condominium was converted into a cooperate by placing a first mortgage on the building.
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The resulting "Condop" had the financial advantage of a cooperative structure but functioned operationally in the same way as a condominium. This structure enabled the sponsor to offer lower unit costs to purchaser, allow the unit owner to deduct his mortgage interests of the building and unit, and also reduce the down payment by 25%.
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Created additional revenue streams by locating the supermarket and parking garage below grade. This approach maximized the assemblages available development rights.
