413 West 154th Street Finds A Buyer

Posted on May 31, 2010 by BeatingUpwind

Well, the market is clearly going up… We looked at 413 West 154th Street last August and it had a lot going for it, but just wasn’t right for us. It sold this past month for more than I would have expected – $1.2M. At approximately 3800 sq. ft. that’s $316/sq. ft. I’ve been thinking the current comp for fully renovated townhouses is around $400/sq. ft. and the difference ($320K) is about right for the amount of renovation that’s needed.

Last year I thought the comp for it was it’s sister townhouse around the corner – 883 St. Nicholas Ave which sold in July ’09 for $1.04M. Thing was, 883 was recently renovated and in better condition, so we figured 413 would go for less than that – probably under $1M.

Aging bathroom needs renovation

413 West 154 had had a day care center in the ground floor which was an English basement, so not completely livable space. The English basement was a bit of an issue for us since Dan wouldn’t have had a cellar to use for an art studio and we didn’t really have the option of a rental apartment on the ground floor unless it was a studio apartment. Despite being it being 21 feet wide, the rooms weren’t that wide because there was a structural wall running the length of the building. The top floor was a one bedroom “mother-in-law’s apartment” – so not legally rentable, but still an independent unit with it’s own kitchen, etc.

The other negatives were that it was a 1/2 block from a large housing project, and while it’s literally “around the corner” from the subway it’s just the C train – and it’s a long walk to express trains.

What 413 West 154 had going for it was that it was incredibly solidly built and completely livable. It looked like it had been renovated in the 80s and everything seemed like it was in working order, though the renovations were looking dated and needed a lot of updating. We knew if we moved into it that we’d want to spend $200-250K on bathroom and kitchen renovations. We never bid on it – there was just too big of a discrepancy between what they were asking and what it was worth to us and the layout didn’t really meet our needs.

Here are some pictures to give you an idea what it was like…

Basement level looking out to garden (previously the day care center)

Living room with spiral staircase up to master bedroom

Back yard with basketball hoop

Back wall showing building was in great condition

So, if you’re in the market for a townhouse, realize prices are starting to go back up. You’ll need to bid higher than you would have a 6 months to a year ago. That’s good news if you’re trying to sell or if you just bought. We’re not talking a huge jump in prices, but enough to be noticeable.

2008 NYC Building Code Impact On Townhouses

Posted on May 20, 2010 by BeatingUpwind

A new building code went into effect about 2 years ago now. Generally the changes were aimed at larger buildings, but a few things affect townhouses.

As I was writing up this post I got a call that our plans were not approved (for the 2nd time) and the issues were largely due to changes in the 2008 code. (Today is definitely a day when it feels like we’re ‘beating upwind’…)

Sprinklers

Possibly the biggest change in terms of expense is that most townhouses now require a full sprinkler system. Apparently the new code conflicts itself – part of it says 1 and 2 family homes require sprinklers, another part says they can be exempt. At one point I found the FDNY’s ruling that said that if the townhouse was being restored back to it’s original 1 or 2 family use then sprinklers were not required at all. However, once a DOB plan examiner says they want sprinklers (as in our case) there’s no way FDNY is going to overrule them and say they’re not necessary. Here are the part of the code that were cited by our plan examiner:

903.2.7 Group R. An automatic sprinkler system shall be installed in Group R fire areas. An automatic sprinkler system shall be installed throughout buildings with a main use or dominant occupancy of Group R.

Exception: An automatic sprinkler system shall not be required in detached one- and two-family dwellings and multiple single-family dwellings (town houses), provided that such structures are not more than three stories above grade plane in height and have separate means of egress.

Here’s a summary of the code in graphical format…

NYC sprinkler requirements for single family homes

(Source)

So we’re now stuck having to put in a sprinkler system. I’m not sure why, but our architect and his expediter were reading the code only the egress had to be sprinklered so he drew up sprinklers on every stair landing and between the stairs and the front door using “water walls” between the stairs/corridor and the kitchen and the living room. But as I was writing this I got a call saying the plan examiner wants the entire building sprinklered (which is consistent with the part of the code he cited). That could be cost prohibitive for us – so it’s potentially very bad news…

The reason why any sprinkler system is so expensive is because sprinklers have to plumbed with cast iron pipe. Copper melts in a fire. The problem is our connection to the water main may not be big enough to support the demand put on it by the sprinklers. So that means we may have to upgrade our connection to the water main or get a dedicated connection to the main for the sprinkler system. That’s major money because it requires tearing up the sidewalk and touching the water main for the street.

We need to get estimates, but the sprinkler system the DOB plan examiner wants will cost WELL over $100K. Now we have to figure out what can be cut so we can afford the sprinkler system. So we’ve hit a pretty major roadblock.

CORRECTION: The sprinklers turned out to not be all that expensive. It wasn’t broken out, but I’m guessing maybe $30K plus $14,500 for a new water main connection.

Smoke Detectors

A more minor point is that all smoke detectors in the building now have to be interconnected – so if one goes off they all go off (great fun when what you’re looking gets a bit smokey).

Egress Stairs

Another change is that the 2008 code now requires that the stairwell continue up to the roof. Typically the way townhouses were built was to have a hatch going up to the roof. Now you need a bulkhead with a full 3′ wide staircase and a door.

27-375(i) (1)(b) – “Buildings exceeding three stories in height shall be provided with one stairway at least three feet in width enclosed in fire-retarding partitions with a fire resistive rating of one hour protected by FPSC doors leading directly to the street and to the roof bulkhead.”

That’s less of an expense than a sprinkler system, but if you’ve got original staircases the question is how to match the style of the current stairs on the staircase going up to the roof. And what happens if you’re staircases aren’t a full 3′ wide? That could be a bit costly – or you’ll have a different type of staircase going the last flight.

There is one good thing about requiring bulkheads – if you put south facing windows in the bulkhead it’s better than having a skylight. The problem with skylights is that they don’t capture much of the low winter light (when you want as much light and heat gain as possible) and they capture too much of the high summer sun – making the building hot and increasing your air conditioning bills. Bulkhead windows get the maximum amount of winter sun and heat (lowering your heating bills) and capture less sun and heat in the summer (lowering your air conditioning bills).

Energy Considerations

Another frustration that relates to the 2008 code is that the plan examiner wants a crazy amount of detail on the energy usage of the building. The code is pretty clear that there are multiple ways to prove energy efficiency. Our architect did one of those ways (using a goverment program that calculates energy efficiency), but the plan examiner said that wasn’t good enough. He wants details on every window, exterior door, and light fixture.

If Your Buying A Townhouse…

If you’re in the process of building a townhouse that needs a lot of work (or already own one) – realize the 2008 code will impact you greatly, as it’s affecting us. The townhouses you may be seeing that are renovated were typically renovated under the old, 1968, building code. You have to meet a much more demanding standard now.

If you can find a townhouse that has plans that were approved under the old building code then you can use those plans provided the permits have been kept current. But if the permits expired make the current get them renewed before you purchase the property. But realize you’ll be able to make minor changes to those plans. Talk to an architect and an expediter to make sure you can build under those plans. If the owner can’t get the plans renewed, lower your bid price substantially to compensate yourself for having to meet 2008 code.

If you’re buying a townhouse without approved plans (the norm) make sure you overestimate your renovation costs to compensate for things like full sprinkler systems. It can get expensive to meet 2008 code.

With Townhouses, Width Means A Lot…

Posted on April 13, 2010 by BeatingUpwind

When we bought our place we kept having people tell us “that’s narrow” (it’s 15′ wide – 13 1/2′ inside brick-to-brick). It’s not as narrow as some – we looked at a few that were 12 1/2 footers, but it is narrow. Harlem Bespoke’s post about 148 W 121 reminded me about the importance of width… Consider the following…

	168 West 123 (our place)	148 West 121
Dimensions	15′ x 60′	18′ x 50′
Stories	5	5
Square footage	4,500	4,500
Sale Price	$530K	$750K
Previous Owner	TPE Townhouses Harlem	TPE Townhouses Harlem
Sale Date	9/15/09	3/3/10

To me that’s pretty remarkable… Same previous owner, same neighborhood, same square footage, yet they paid 41.5% more for their place than we paid for ours.

But the reason is pretty simple – width… 18 feet is the width when developers start getting interested in a townhouse. Building code requires a 3′ wide staircase and 3′ hallways. You’ll need one public hallway for the staircase and then another inside the apartment. Even if you do exposed brick, you’ll have at least 8″ of wall, so you need 9′ 8″ just for the required parts. In our building that leaves less than 4 feet for a bathroom, which isn’t enough. On a standard 18 footer that has about about 17 feet brick to brick you have over 7 feet of room for the bathroom, closets, etc. – which is plenty…

That means if you’re looking for a bargain on a Harlem townhouse shell and you just want it to be 2 or 3 family, then you should go narrow… You’ll get a better price on a 15 or 16 footer than you will on an 18+ footer, ’cause you won’t be competing with developers.

UPDATE: One thing I forgot to mention is that once a narrow townhouse is renovated it can sell for good money as is evidenced by the recent comp over on 119. So this really does seem to be a supply vs. demand issue. There’s just more demand for wider shells than there is for narrower shells. You pay a premium at 18+ feet because you’re competing with developers.

The Kitchen Starts To Take Shape…

Posted on April 7, 2010 by BeatingUpwind

Early last week we went to Ikea in Paramus. We were having fantasies that we’d like high end of Ikea well enough to live with it for 5-10 years before we replaced it with what we really wanted – a high-end European modular system. But we didn’t see any Ikea kitchens we’d want to live with (we should have known that would be the case). We did find a great one for the rental unit, but nothing for us. On the way home from there we were driving past Poggenpohl so we stopped in. We know we can’t afford a high end modular Euorpean kitchen, but we wondered if we could afford a basic one. All the stuff we liked at Poggenpohl was at the upper end of their price range and the rest of it didn’t really resonate with us.

On Good Friday we headed over to the A&D building to do two things – 1) try to get inspiration and ideas for what we can and should be doing in terms of finishing details, and 2) to understand the price points. We started at Poliform since our old kitchen had been a Poliform kitchen. The Poliform showroom is now massive – takes up a whole floor – but everything was being ripped out and redone in preparation for a May relaunch of their showroom just before ICFF. Long story short Poliform blew us off and told us a few days later that they weren’t going to bother to do a proposal for us because they expected prices to fluctuate before we would be buying (a completely lame excuse, IMHO).

We stopped at a number of other kitchen places but our favorite was Eggersmann – a German company that’s only just started selling in the US. Their stuff was INCREDIBLE (take a look at their website), and the sales person who was helping us was not only nice and helpful, but she also knew her product backwards and forwards and so she was extremely informative. And kudos to them for being the first ones to get back to us with a proposal. And the proposal wasn’t just a sales sheet – there was a whole 3D mockup… These guys are GOOD!

Here’s what they came up with – realize this is just a first draft…

The ceiling height is wrong – it’s 10 1/2 feet and they don’t show the stairs and the doors will have glass panels in them, but it’s great first shot…

As they should, the renderings got us wondering about the layout of our kitchen. For starters, notice the similarity of the layout with our old kitchen…

Both have a tall vertical (the fridge) to the left, then the range in the center and the sink off to the left. As much as we loved our old kitchen, we want something new… To that end we’re thinking the sink or possibly a cooktop could go in the island to change things up.

The first rendering also made us realize that we don’t really want the closet right inside the front door. It makes the space too narrow. So we’re going to move it down where it’s opposite the stairs and then put a long bench across from the kitchen and narrow the island and remove the stools. That will give a wider walkway with a lot more shoulder room, but we’ll still have a place to sit to put on and take off our shoes and a place guests can hang out while Dan’s making dinner.

Unfortunately, while we love Eggersmann, we may not be able to afford them. The price they came back with was double what we paid for our Poliform kitchen 5 years ago. Even if we cut back on how much they do (not do the entry closet, etc.) their price may still not fit into our budget – we’ll see… But if you’re doing a renovation and like a modernist aesthetic, we highly recommend them – their stuff is possibly the best we’ve seen.

We’re also having Siematic spec a “lower end” kitchen (by their standards). If that doesn’t come in at a price we can afford and we can’t afford Eggermann then we’ll probably give up doing a European modular system and go with a “custom kitchen”. The problem is local craftsman don’t have the same abilities as the European factories. That means we have to be careful to design the kitchen in a way they can execute properly. That’s a lot more work for us, but it is what it is…

Surprisingly High Comp For A Harlem Townhouse Shell

Posted on April 7, 2010 by BeatingUpwind

Harlem Bespoke just pointed out that 11 West 119th Street sold recently – for $400,000! That might seem like a low price, but actually it’s a surprisingly high price. The building is 14′ x 38′ on a shallow 65′ lot. 14′ x 38′ x 4 stories = approx. 2,128 sq. ft. So the cost per square foot was $188/sq. ft. By contrast we bought ours a few blocks away for $118/sq. ft. If 11 West 119th had sold for our price per square foot the price would have been $250,000. The final asking price was $450K. I’m not sure why the buyer only got $50K off final asking when most people buying similar properties tend to get $150-200K off asking. (For example, we got $265K off what they were asking when we started bidding).

During our search we went through the one 2 doors down – 7 West 119th Street. It was fully renovated with some high end finishes (Sub Zero fridge, but just “better than rental” cabinetry). It wound up selling for $1.0983M. It’s hard to figure out the square footage of #7. Officially it’s 2,794 sq. ft. so it officially sold for $393/sq. ft. However, the City has it’s length at 47′ when all it’s sibling neighbors are officially 38′. I don’t remember it being pushed out in the back and the permit they pulled said no enlargement was proposed. It’s on a lot with a diagonal back line – one side it’s 54′ deep, the other it’s 58′ deep. I remember the back yard basically being a small deck, but it the short side was definitely more than 7′ feet long. So I really think the square footage of #7 is smaller and more inline with it’s neighbors. On top of everything else they did a double height living room so it was probably under 2,000 of real square feet. If it were 2,000 sq. ft. then the price per square foot would have been $549/sq. ft. which is way over what the other comps support. By comparison the incredible one on Strivers’ Row went for $505/sq. ft.

11 West 119th is a SMALL townhouse that shouldn’t be made into more than a single family home (#7 was made into a 2 family with a tiny studio apartment and I think it was a mistake). It’s not not in a historic district (though it is literally adjacent to a one). It’s steps from East Harlem where values are somewhat lower. It’s across the street from (relatively nice) public housing. So I’m not seeing how the property commanded $188/sq. ft. But with both #7 and #11 selling way over what the comps support — apparently they’re smoking really good over at that end of West 119th Street! 😉

No matter – this is a great comp for those of us who own townhouses. Be happy! And for the new owners of #7 and #11 West 119th Street – the values will go up in the coming years and they’ll still make money when they sell.

But honestly – if you’re looking to buy a Harlem townhouse shell – get a damn good real estate broker and a subscription to Property Shark that includes comps and really get to know what things are actually selling for (as opposed to what they’re listed for). A Property Shark membership is WAY cheaper than overpaying for real estate.