• Skip to primary navigation
  • Skip to main content
  • Skip to footer
The Gasdaska Conlon Team

The Gasdaska Conlon Team

212.836.1015
Send Us An Email
  • Home
  • TEAM
    • The Gasdaska Conlon Team
    • Sharon Baum
  • Properties
  • Resources
  • Market Reports
  • Podcast
  • BLOG
  • CONTACT
You are here: Home / Archives for Podcasts / You Should Know

You Should Know

Land-lease Buildings in New York City – What’s The Appeal?

July 28, 2022 by Jonathan

The New York City real estate market is like no other in the world. There are tons of niche quirks and unusual types of purchases that can be daunting to those who aren’t familiar with NYC real estate terminology. One extremely common question we hear is this:

What is a land-lease building in New York City?

A land-lease building is a building that doesn’t own the land it sits on. Instead, the building rents the land from a separate landowner, who retains ownership of a parcel of land but leases the building constructed on it. Land-leases are typically around 100 years in length at their inception.  

Transacting on apartments in land-lease buildings comes with a few unique hurdles to jump through. For most buyers (especially if they aren’t working with a NYC real estate broker yet), it can be difficult to tell if a building is a land-lease or not, and even more difficult to track down who the landowner is. 

Read on to learn the pros and cons of owning an apartment in a land-lease building, what happens when the land-lease expires, and what you can expect from your lender should you make an offer on a land-lease home.

If you’d rather listen along, we have a podcast episode all about land-leases! Tune in below.

A Comprehensive Guide to Land-lease Buildings in New York City

What Exactly is a Land-lease Building?

While the definition above captures the gist of what a land-lease building is, there is a little more to it than that. For starters, land-leases are also sometimes referred to as ground leases. 

These buildings make up a tiny percentage of the apartment buildings in New York City – and most of them are sprinkled throughout the city with a few exceptions such as Battery Park City, which is entirely on a land-lease from the Port Authority and warrants a separate discussion altogether. 

They’re also usually set up as cooperatives rather than condominiums. If you happen to find a land-lease co-op, know that they typically do not have to pay property taxes because they rent the land vs. own it.

Because the land beneath it is leased by the building, a portion of the monthly maintenance fees owed in a land-lease building is the land rent that everyone in the building contributes towards. This makes the monthly fees higher in land-lease buildings. The asking price of such an apartment is usually significantly lower than market value to compensate.

So, if you see a co-op listed at roughly 20%-30% below market value with high monthly fees, there is a strong chance that it is a land-lease building.  

Tired of reading? Watch our podcast episode about land-lease buildings at the link below!

Perks of Land-lease Buildings

While land-leases definitely have some unique drawbacks compared to traditional co-ops and condos, there are also some perks.

  • The biggest perk in a land-lease building is that a buyer will get more square footage for their dollar.
  • Given that most land leases are legally structured as co-ops, a buyer also avoids two of the larger closing costs paid in condo transactions – title insurance and the mortgage recording tax.
  • Although structured as co-ops, most land-lease buildings are governed by condominium type by-laws, allowing for more flexibility in ownership as well as the option to sublet the apartment immediately.

The flexibility of ownership and the significantly lower purchase price and closing costs may not seem like a good enough deal in comparison with the monthly maintenance fees – but for some, it could make sense financially.

Doing the math on a land-lease apartment, especially over the period of time you expect to own it, might surprise you. Savvy New Yorkers and their brokers know that sometimes the best deal out there is a land-lease – because most potential buyers won’t even consider it. That can make the sellers a little more flexible when it comes to negotiations.

When considering an offer on an apartment in a land-lease building, make note of how long is left in the lease. If there’s decades to go before it expires and you and your broker agree the math makes sense, it could be a great investment.

Drawbacks of Land-lease Buildings

Ultimately one of the most influential drawbacks of buying in a land-lease building is that you are still paying rent monthly, albeit just for the land instead of the apartment itself. That money you spend each month doesn’t go towards any capital improvements and there aren’t any tax deductions you can take to compensate for it.

The lower market value of apartments in land-lease buildings may be attractive when you’re a buyer, but when you become a seller it becomes more of a negative. As a seller of a land-lease, you have a smaller segment of New Yorkers who will actually consider the purchase, and they usually require a good amount of education along the way.

This combination can result in your apartment sitting on the market for a while, which can impact your bottom line. Additionally, if you will own the home as the land-lease gets closer to expiration you may be in for some serious complications, including having trouble finding a lender if you’re financing.

What Happens When a Land-lease Expires?

Most of the time a building and the landlord are able to negotiate a renewal of the land-lease decades before it expires. This is especially true in cases where local governments are the land-owners, such as in Battery Park City. 

The Battery Park City Authority manages the land-leases in Battery Park City, and they are a nonprofit organization with the express purpose of maintaining and improving the neighborhood. This community-driven instead of profit-driven approach makes them incredibly motivated to negotiate lease renewals.

However, in rare cases, usually involving private landowners, the land-lease renewal negotiations are not successful. If there is no lease renewal, then ownership of the land, building, and any improvements immediately revert back to the landowner.

Yes, you read that right.

The risk of this nightmare scenario exists with all landlords, but especially with private landowners. And because of this, in the event a renewal cannot be negotiated, the value of an apartment in a land-lease building gradually decreases to $0 by the end of the lease. 

In some cases, building owners have been able to buy the land from the landowner. Ultimately, this doesn’t lower costs for building residents. Effectively, all you do in that scenario is swap your monthly land rent for a mortgage OR fork over a lot of cash up front for the purchase. 

land-lease buildings

What Are the Different Types of Landlords of Land-lease Buildings?

What happens as the land-lease on a building draws to a close is greatly influenced by what type of landlord owns the land under it. There are three main types: government, non-profit, and private. We’ve ranked them in order of lowest risk (1) to highest risk (3).

  1. Government – Battery Park City, as mentioned in the previous section, is a prime example of a government landlord. Because BPCA and others like it are a government entity, they do not have to pay property taxes. This means that the monthly land rent can be reinvested into the neighborhood instead of set aside to cover property taxes. 
  2. Non-profit – The Roman Catholic Church and the Episcopalian church are some of the larger non-profits who invest in real estate and lease their land to building owners. Like a government entity, churches and some non-profit organizations also don’t pay taxes, so they too are usually more community driven. 
  3. Private – These landowners are everyday people just like you and me – with their own motivations and goals. Private landowners are typically more profit driven and harder to negotiate with. The land under your building could be sold at the end of the lease without you ever knowing it, until the new landowner decides to hike land rent. Even if the land doesn’t change hands, the end of a land-lease often marks a significant increase in land rent for residents. 

How to Find Out if an Apartment is in a Land-lease Building?

A good real estate broker can help you find out if the apartment you have your eye on is in a land-lease building, and it is important to know the facts before any sort of offer is made or value decided on a property.

Another person you may want to call on before making significant moves towards purchasing a land-lease apartment is your real estate attorney.  A good real estate attorney can investigate and advise you from a legal standpoint and should be relied upon for the nitty gritty sort of information/terms of the lease.

It is important to note that not all land-leases are created equal, so if the general features we discussed make it appealing to explore, rely on experts in your corner to advise you on the ins and outs of the lease in any specific building.

If you’re trying to ascertain whether a building is a land-lease or not before you make an offer, remember what we discussed earlier: Co-ops that are 20-30% below market value with steep monthly maintenance fees are usually in land-lease buildings.

Getting a Mortgage for an Apartment in a Land-lease Building

The easiest way to purchase a land-lease apartment is to pay cash up front. You might be able to secure a loan for the apartment, though. Emphasis on might. It’s important to be aware that your application will face significantly more analysis than a mortgage on a non land-lease apartment.

The first and most important factor your lender will consider is how much time is left in the lease. It will be virtually impossible for you to get a mortgage on the apartment if the land-lease will expire before the 15 or 30 year loan is up. 

It is also much more challenging to build equity on land-lease purchases, because buildings depreciate in value over time while the land they are on appreciates. Lenders take this factor into account when reviewing the risk vs. reward when it comes to your application.

The Mysterious Land-lease Building, Deciphered

If you have further questions about land-leases or other nuances of New York City real estate, send us an email. Whether you become a client or not, we genuinely appreciate the opportunity to chat about the city we love and your place in it.

Filed Under: Apartment Types, Blogs, Podcasts, You Should Know

Washers and Dryers – Why Can’t New Yorkers Have Them?

June 9, 2022 by Jonathan

In-unit washers and dryers aren’t standard amenities in NYC apartments. While you can expect to find at least a stackable unit in most luxury-priced apartments, those in lower price points tend to rely on either building laundry rooms or external laundry services.

But why is that the status quo? Why do most New York apartments lack washers and dryers?

Many NYC buildings’ plumbing infrastructure is too old and can’t handle the additional capacity needed for each apartment to have in-unit washers and dryers. If the building happens to allow a renovation that allows for laundry facilities, it still may not be possible to add them because of wet over dry rules.

Many residential buildings in Manhattan were built in the late 1800s or early 1900s before it was common to have washing machines and clothes dryers in apartments. These buildings were meant to accommodate hand washing dishes, bathing, and not a whole lot else. But that’s not always the whole story – let’s take a closer look.

Would you rather watch a video about washers and dryers than read a blog post? We’ve got you. Click below.


There’s Not Enough Room

A typical laundry room is realistically used infrequently, compared to other areas of an NYC apartment, so many apartment owners opt to use the space more efficiently. Why pay for space 100% of the time when you could use it for a larger closet, extra bathroom, etc?

While it’s possible to squeeze small stackable washers and dryers in most closets, the load size will likely end up so small that owners or tenants would rather take their laundry to a laundromat or pay a laundry service to take care of it all at once.

Wet Over Dry

The “Wet-Over-Dry” rule states that wet rooms, like bathrooms, kitchen, and laundry rooms, need to be placed directly above wet rooms in other units. This way, in the event of an overflow or water damage, the water will (theoretically) be contained to the wet rooms.

All co-op and condo buildings require owners to submit renovation plans before starting any work. This allows those managing the building to check for any potential issues. You can sometimes find whether or not your building allows wet-over-dry in your building’s information online, or you can always ask your building’s super.

It’s Too Expensive

Many owners or tenant/shareholders would like to add in-unit washers and dryers, but the cost is also somewhat prohibitive. Just imagine trying to renovate the plumbing (and electrical!) in a building in the middle of Manhattan, full of residents, without disturbing every single apartment…it’s just not possible.

It also certainly wouldn’t be cheap. Renovations in NYC have more red tape and regulations than most other places in the world, both of which add to the total bill. Just to add a washer or dryer, you have to file for permits with the Department of Buildings, not to mention clear things with your board.

Each washing machine must be connected to a water supply, a large capacity drainage system, and a dedicated electrical circuit. Additionally, each dryer needs to be vented directly to the exterior of the building and cleaned regularly to avoid fires.

The cost of adding all of the required infrastructure for washers and dryers to buildings not originally designed for them is not manageable for a lot of New Yorkers. 

There Are Existing Drainage Issues

If an apartment building, or even a specific unit within an apartment building, has existing drainage issues, it is unlikely the building will allow washers and dryers.

The sheer volume of water that washing machines use can make any existing pipe and drainage problems so much worse. To illustrate just how much water washers use, an average toilet uses between 1.5-3 gallons per flush, while washing machines can use up to 30 gallons per load.

If the existing pipes in the building aren’t rated for that level of flow, you’ll end up with problems both in fueling the washer with enough water to run and draining the water quickly enough after the load is finished washing.

Listen to our podcast on the subject of laundry in NYC here:

There Are Better Laundering Solutions

Laundry is a fact of life – everyone has to do it (or have someone else do it). Many buildings that don’t allow washers and dryers in each apartment will have laundry facilities just for their residents. But that still means you have to lug your laundry down and sit with it until it’s finished.

If your building doesn’t have laundry facilities, you might find yourself making frequent trips to the laundromat. There are many available in all areas of the city, but again…you have to pack up your laundry, get it there, and sit with it until it’s clean.

That’s why so many people opt for wash and fold services instead. Some even offer pickup and delivery, and can even interface with your doorman (if your building has one). 

Interested in wash and fold laundry services? Here are the top 10 rated services on Yelp as of the time of writing!

Need help finding apartments with washers and dryers? Please reach out! The members of the Gasdaska Conlon Team would be thrilled to work with you.

Filed Under: Blogs, New York Explained, Podcasts, You Should Know

EP 57: Is Now the Right Time to Buy or Sell an Apartment in Manhattan?

August 26, 2021 by Jonathan

The Real Talk NYC Real Estate Podcast: Episode 57

Welcome to the Real Talk NYC Real Estate Podcast, where experienced, expert NYC real estate brokers John Gasdaska and Jonathan Conlon break down what’s happening in the market, what you need to know whether you’re a buyer, seller, or agent, and their insight into the future, with a little bit of fun along the way.

In this week’s episode, John G flies solo once again to talk about the most frequently asked question the Gasdaska Conlon Team has to navigate: Is now the right time to buy or sell an apartment in Manhattan?

Timing the Manhattan real estate market just right is every buyer and seller’s dream. Getting in at the lowest possible price and getting out at the highest possible price seems like it should be easy to finagle, for a broker with market savvy and ambition, right? But is this dream grounded in fact or fiction? John explains all this and more in this podcast.

Knowing when is the right time to buy or sell an apartment in Manhattan requires an intimate and realistic look at your personal circumstances. Even the most experienced and knowledgeable real estate brokers in the city never know quite when the next peak or dip in the market will be. She’s a fickle mistress, after all. But, with the knowledge of your personal circumstances, a broker can advise you whether or not it makes sense for you to sell your apartment or buy a new one.

When it comes to buying, it’s important to look at the long term. For example, if you’re only going to be in the city for a year or less, and then you’ll need to get your money back out of the property, it’s probably better for you to rent. Similarly, when it comes to selling, if you’re panic selling because the market is dropping, or it’s in the midst of a city-wide or global crisis, it’s probably not the best time for you to list your property.

After the episode, if you have any questions, The Gasdaska Conlon Team is here to help! Answers are always just an email, phone call, or text message away.

Is Now the Right Time to Buy or Sell an Apartment in Manhattan?

Resources

  • Our collection of resources for buyers and sellers
  • John’s Page
  • Jonathan’s Page
  • Like Our Facebook Page
  • Follow Us On Our Instagram
  • Watch Us On Our YouTube

Loved the episode? Leave us a review on Apple Podcasts!

To leave a review, on an iOS device:

  1. Go to this link: https://podcasts.apple.com/us/podcast/the-john-jonathan-sell-nyc-podcast/id1522094866
  2. Select ‘Listen on Apple Podcasts’
  3. Then, select ‘Ratings and Reviews’
  4. Finally, select ‘Write a Review’

Curious about our listings? See them here.

Want to get in touch? Reach out! We’d love to hear from you.

Filed Under: Podcasts, You Should Know

EP 55: Staging Apartments to Sell in NYC

August 13, 2021 by Jonathan

EP 55: Staging Apartments to Sell in NYC

The Gasdaska Conlon Team Podcast: Episode 55

Welcome to the Gasdaska Conlon Team Podcast, where experienced, expert NYC real estate brokers John Gasdaska and Jonathan Conlon break down what’s happening in the market, what you need to know whether you’re a buyer, seller, or agent, and their insight into the future, with a little bit of fun along the way.

In this week’s episode, John G strikes out on his own to discuss a key strategy to getting the best price for their homes that sellers often skip: staging. Staging apartments before listing in NYC is crucial to helping buyers see the potential each place has.

Have you ever toured an apartment that was cluttered with dog or children’s toys? Where the closets were so full of junk the clothing bars looked like they were about to pop off the wall? Where the corners were so shadowy and dusty it gave the whole place a bad vibe? That property likely wasn’t staged.

In order to stand out and allow properties to shine to their fullest potential, staging apartments is essential. Inviting expert real estate brokers like the Gasdaska Conlon Team to curate your home and belongings, emphasize the view and natural light your windows showcase, and put their special spin on your place will directly pay off in cold hard cash when you close.

By the end of this podcast, you’ll be chomping at the bit to let John and Jonathan stage your apartment and get it sold for an excellent price. Contact us if you have any questions, or if you’re ready to move forward!

The Gasdaska Conlon Team are experts at staging apartments, as you can see in this photo of one of their listings.

Resources

  • Our collection of resources for buyers and sellers
  • John’s Page
  • Jonathan’s Page
  • Like Our Facebook Page
  • Follow Us On Our Instagram
  • Watch Us On Our YouTube

Loved the episode? Leave us a review on Apple Podcasts!

To leave a review, on an iOS device:

  1. Go to this link: https://podcasts.apple.com/us/podcast/the-john-jonathan-sell-nyc-podcast/id1522094866
  2. Select ‘Listen on Apple Podcasts’
  3. Then, select ‘Ratings and Reviews’
  4. Finally, select ‘Write a Review’

Curious about our listings? See them here.

Want to get in touch? Reach out! We’d love to hear from you.

Filed Under: Podcasts, You Should Know

EP 54: For Sale By Owner Apartments in New York City

August 6, 2021 by Jonathan

This week, John and Jonathan dig into the truth about For Sale By Owner apartments in the New York City market.

As you know if you’ve listened to previous episodes of the podcast, or purchased/sold a property in Manhattan, there’s a lot of points in the process where a real estate transaction can fall apart. For Sale By Owner apartment transactions are even more difficult to pull off, and our hosts take this opportunity to spell out why that’s the case.

From market analysis and pricing to staging and marketing, if you want to get the best price possible and sell your apartment quickly, it’s best to work through an experienced, informed broker. The Gasdaska Conlon Team is always available to answer questions about For Sale By Owner apartments or demystify any part of the process for potential buyers and sellers. Please let us know if we can help you!

For Sale By Owner apartments in New York City


Resources

  • Our collection of resources for buyers and sellers
  • John’s Page
  • Jonathan’s Page
  • Like Our Facebook Page
  • Follow Us On Our Instagram
  • Watch Us On Our YouTube

Leave us a review!

  1. Go to this link: https://podcasts.apple.com/us/podcast/the-john-jonathan-sell-nyc-podcast/id1522094866
  2. Select ‘Listen on Apple Podcasts’
  3. Then, select ‘Ratings and Reviews’
  4. Finally, select ‘Write a Review’

Curious about our listings? See them here.

Want to get in touch? Reach out! We’d love to hear from you.

Filed Under: Podcasts, You Should Know

EP 53: Post-war Apartments – The Pros and Cons

July 30, 2021 by Jonathan

In this week’s episode, John and Jonathan get real about post-war apartments and what they have to offer!

There are so many apartment buildings in New York City that it’s necessary for brokers to classify the building types, which comes down to architectural eras. We covered pre-war apartments in episode 51, which you can listen to here! Now, we’re talking all things post-war apartment.

The post-war apartment building can be loosely defined as any apartment building built after WWII and before 1990. They have their own architectural characteristics and more modern amenities, despite the shift to a slightly utilitarian design. Give the podcast a listen to find out exactly what makes post-war apartments special!


Resources

  • Our collection of resources for buyers and sellers
  • John’s Page
  • Jonathan’s Page
  • Like Our Facebook Page
  • Follow Us On Our Instagram
  • Watch Us On Our YouTube

Leave us a review!

  1. Go to this link: https://podcasts.apple.com/us/podcast/the-john-jonathan-sell-nyc-podcast/id1522094866
  2. Select ‘Listen on Apple Podcasts’
  3. Then, select ‘Ratings and Reviews’
  4. Finally, select ‘Write a Review’

Curious about our listings? See them here.

Want to get in touch? Reach out! We’d love to hear from you.

Filed Under: Podcasts, You Should Know

  • Go to page 1
  • Go to page 2
  • Go to page 3
  • Interim pages omitted …
  • Go to page 7
  • Go to Next Page »

Footer

JOHN GASDASKA

Office: 212.821.9138
Mobile: 646.345.7350
jwg@corcoran.com

JONATHAN P. CONLON

Office: 212.508.7162
Mobile: 347.564.2440
jconlon@corcoran.com

Copyright © 2023 | The Gasdaska Conlon Team | Terms of Use & Privacy Policy | Fair Housing Notice | Reasonable Accommodations Notice | Located at 590 Madison Avenue, NY, NY 10022