Bidding On A Wreck Of A Towhouse

So now that the buyers of our coop have been approved by the board Dan and I are getting serious about getting another place – a townhouse in Harlem to be precise. It’s at times like this that the name of this blog starts making sense… Our buying a townhouse is just like beating upwind in sailboat… It’s difficult, but once you get where you’re going it’s wonderful and relaxing…

This is one of the only times we’ll be able to get into the townhouse market. We sold our place (knock wood) for 15% less than it was worth at the height of the market. Meanwhile Harlem townhouses are down 60-80% from their high. But it’s a weird market, to say the least. Financing is extremely tight and most of the places we’re looking at require substantial renovation – often $500K or more in renovation.

Our options are:

  • A newly renovated townhouse that has really small rooms – like 7 West 119th where can’t even fit our couch into the living room without splitting it in two pieces and bedrooms that are barely big enough for a bed. So that option is out since the room sizes are too small to work for us.
  • A full-size townhouse on a good block that is habitable/mortgageable, but will need major renovation in 5-10 years if not sooner. 48 Hamilton Terrace is an example of a townhouse like that. The bottom line is we can’t afford to do the renovations right away, and after you add the renovations to the original cost it becomes an expensive house.
  • Shells and wrecks that need a total gut renovation. These generally have to be bought all cash and then you have to hope you can get financing from one of the few lenders who does construction loans. And on top of that we can’t afford the shells on the good blocks unless they’re really narrow (12 footers).

So our options are limited, but the one that seems best at this point is to go with a shell/wreck. We’ve got our eyes on one in particular and put in a bid on it yesterday. Our offer is lower than the seller had hoped, but it’s realistic. There are two townhouses that are good comps – both closed on July 20th – 419 West 146th Street, and 400 West 145th Street. One was sold at auction, the other by a broker, but both settled for $146/sq. ft. Add to that a declining market and the a less desirable location and the seller should seriously consider our offer. Given that the seller is an estate that wants to close its books, we’re hopeful.

Here are some pictures of the one we’re bidding on…

Delapidated Kitchen

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Needless to say, it’s going to be a huge amount of work to renovate it, but when it’s done I’ve figured out that it will cost us about the same (net) as our current apartment. So it really will be a great deal. And it’s not all horrible. The reason why we like it is because it’s got some great original details. The biggest of which are the plaster walls in a configuration that works for us. Then there are the fireplaces you see in a lot of townhouses, but what you don’t see a lot are the big huge old mirrors. There’s a huge three paneled mirror/coat rack just inside the front door, plus two other smaller ones in other locations. And the woodwork on them is pretty incredible too…

Great woodwork in an old Harlem townhouse wreck

So there’s a lot of potential… We just have to get the seller to understand that the value of their place has dropped in a big way. They were in contract 18 months ago for double our initial bid, but that was before the stock market crash. Then they had a higher offer, but those buyers couldn’t secure financing. And in the meantime the market has continued to go down.

So we’ll see… Hopefully there will be good news soon…

The Bailey House Sells For A Mere $1.4M!

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The amazing Bailey House (as in Barnum & Bailey Circus) has sold for a mere $1.4 million after being listed earlier this year for $6.5 million. That’s only 21.5% of the asking price.The house is incredible. The level of detail is just stunning and, built in 1926, the house really speaks to the wealth of Harlem in the years before the Great Depression. It’s located at the corner of 150th and St. Nicholas (where St Nicholas Place splits from St. Nicholas Avenue) – a short block from Edgecombe Avenue where many of Harlem’s “sugar daddies” used to live giving Sugar Hill it’s name. Today it’s a couple short blocks from the subway entrance for the A,B,C and D lines between 147th and 148th on St. Nicholas Ave. One of the best subway stops in Manhattan as it’s only 2 stops from 59th Street on the A and D trains.Granted, the house needs some work and restoring it back to it’s full glory won’t be cheap, but $1.4 million for a house like this is an absolute steal. It’s a mere $170 per sq. ft. You can see from the pictures that there are a number of Tiffany windows in the building – they alone must be worth a fortune.

The only two negatives to the house are its relatively high taxes (down to $25K/year from $28K/year when a typical townhouse in that neighborhood with half as much square footage pays about $4K/year), and the ugly gas station across the street.

The sale price of the Bailey House really speaks to the troubles townhouses have been having in Harlem lately. They’re down 60% or more off their peak in 2007 while other neighborhoods are down closer to 15% – and it doesn’t look like they’ve hit bottom yet. This is definitely the time for buyers to be tough with sellers, and sellers to hold onto their properties, if they can weather the storm and wait for prices to go back up.

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The 190th Street NYC Subway Stop On The A Train

The 190th Street stop on the A train has been our home stop for nearly 11 years now. It’s a curious station… At that point the A train runs under the Hudson Heights hill. It’s pretty much all bedrock at that point and the station is so deep in the hill that you have to take an elevator to the top of the hill to get out onto Fort Washington Ave., where we live. There’s also a long ramp that goes to Bennett Avenue at the bottom of the hill.

Because it’s so deep in bedrock the station has a moderate temperature all year long. It’s one of the coolest places you can be on a hot summer day. There are natural springs in the area so the bedrock at that point is quite damp and wet. The combination of cool temperatures and moisture means the station almost constantly has a damp sheen on the walls and floors. In some areas they’ve have had to build drainage systems to route all the water through areas that are less damaging. The moisture also means a lot of the original metal work (on the stairs, etc.) is rusting badly. You can see the dampness of the floor in the pic below.

190th Street Station On The A Train in Manhattan/NYC

The other odd aspect of the station is that it’s not at 190th Street. At the bottom of the hill it lets out north of 192nd Street. Notice on the map where it says the subway station is, but the red X’s are where the actual subway entrances are.

190th Street Subway Station Location For The A Train In NYC

But then again the 191st Street stop on the 1 train actually lets out on Broadway south of 190th Street (though it is between 190 and 191 where it lets out on St. Nicolas Ave on top of Fort George Hill).

The map is wrong in other aspects as well, Fort Tryon Park, shown in green actually extends to the east and the subway station is under (and in) the park.

Coming out of the 190th Street station onto Ft. Washington Ave. is a wonderful experience (relative to exiting most other stations). You come out into Fort Tryon Park with Jacob Javits Playground just across the street. There are trees everywhere – everything is green and leafy. There are ping pong tables, a playground, volleyball courts and then the entrance to the Heather Gardens and the main portion of Fort Tryon Park all either adjacent to or across the street from the subway entrance. After spending a day in the concrete, steel and glass canyons of midtown, you feel like you’ve come home to a little oasis – just a short subway ride away.

In the picture below you can see the roof of the stone building the elevators come up into (it’s quite a bit bigger than it needs to be for some reason). You can see the volleyball courts to the east (right), and the playground across the street, the heather gardens to the north, and our coop to the south. But notice all the trees… In addition, the large building across the street and to the southwest is the shrine of Mother Cabrini – the patron saint of immigrants. Her body (minus the head) is in a glass casket under the altar.

190th Street Subway Stop Topography

In terms of how long it takes to get here. If the train has no delays, it’s a 20 minute ride to Times Square. Plan on 45 minutes door to door to most places in Midtown West, Chelsea and the West Village. The biggest reason for it being pretty quick is because the A train has no stops between 125th Street and 59th Street (3.3 miles).

The 190th Street stop does need some renovation however. Parts of it are crumbling. Including the steel railings on the stairs, and the concrete surrounding the steel i-beams between the train tracks. The paint on the walls is probably 15-20 layers deep in some areas and constantly peeling. The MTA generally does a decent job controlling grafitti, but otherwise the maintenance is minimal.

Possibly The Worst YouTube Video Mashup Ever

This is wrong on so many levels… You’ve got Rick Astley singing and Nirvana playing…

So for one that means Rick Astley has taken over for Kurt Cobain. Then there’s the whole thing of putting Rick Astley in a mosh pit environment (yes, it’s a mashup with a mosh pit). And then on top of everything else as I write this it has a perfect 5 star rating on YouTube…

Doggie Bliss

Our dog Buddy just had one of those wonderful experiences… Cleaning out the dust from a bag of dog food… I think he could live in that bag if it were an option!

A Beagle in a dog food bag

And just when you think he can’t get in any further…

Beagle dives into an empty bag of Eukenuba

Sometimes I wish I were a dog… He’s got a good life!