The shell market in Harlem has gone up and down over the years and is currently at a standstill on all fronts. The above buildings on West 126th, just east of Lenox Avenue, are only a block away from the 2,3 express trains and around the corner from the Mount Morris Park Historic District. So what's going on with these buildings? Either the owner ran out of money to develop the buildings since the finance market froze, or they are aiming high on a sale. Shells have not moved at all this year and, below 125th Street, the asking price is still in the high 700K range. Before, when these types of buildings were being bought up, they were exchanging hands below 300-400K. Even though it would cost double the amount to fix them, the final cost was very reasonable for owning a house in Manhattan. Since most folks cannot get a loan for a shell and they require a cash purchase, prices really need to adjust back to when the math made sense. Also, check out the center building in the photo. Adding the horizontal steel beams are the standard way to keep facade walls intact for stability for those who want to keep their landmark properties in order. Photo by Ulysses
Funny you should ask about those particular buildings (71-73 West 126th Street - 2 buildings on a single tax lot). They're owned by the singer Roberta Flack.
ReplyDeleteBuilding permits were pulled late last year and early this year. In June there was a stop work order issued for dangerous work conditions in the building. It was lifted and then in August a partial stop work order was issued because the sidewalk shed didn't meet DOB specs. Don't know much else about it...
One other thing - rehab loans ARE available for shells. Wells Fargo is the primary bank giving them out right now. They cost more than a regular mortgage, however.
ReplyDeleteAnd shells ARE selling below 125. For example, 148 West 121st sold in September for $750K. That was one of the higher sales. Most of the shells (or near shells) that are selling are going for between $400K and $600K. Generally about $200K off the asking prices.
Correct me if I'm wrong but rehab loans are only given out after getting a regular mortgage. Since the banks will not lend out money for a shell, then buyers basically have to pay in cash?
ReplyDeleteThese few brownstones have sat neglected for so long but they always had a certain charm as they are painted such different and interesting colors. I’m pleased to see the facades are being preserved so West 126th street can measure up to the many other beautiful cross streets that grace Lenox Ave. Great post.
ReplyDeleteJay, many thanks for this interesting info on these buildings, I hope Roberta Flack decides to finally live there. This will follow a trend of black aristocracy making Harlem their home along with the likes of Maya Angelou and some other established artists I have had the good fortune to have met in Harlem over the years.
ReplyDelete@Anonymous - No, you don't need a regular mortgage first to get a rehab loan. Banks will lend money on a shell provided renovation happens immediately. They have specialists who critique you, your plans, and your contractor and they stop by every two weeks or so to make sure things are proceding as scheduled and they are the ones who pay the contractor. It's more expensive than a regular mortgage, but it's available.
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