In the News: Truffles Could Get Converted to Condos

••• The Real Deal has a long article about how the Jack Parker Corporation is trying to get out of the real estate business by selling “seven properties across three states, including a multifamily component of more than 2,000 New York City apartments”—one of which is Truffles Tribeca. “Marketing materials obtained by TRD show that the rental-to-condo conversion could result in expensive sellouts at three residential properties. The projected sellouts are $678.5 million for Truffles Tribeca; $473.4 million for 367 of the apartments at the Biltmore; $202.5 million for 432 of the apartments at Parker Towers, documents show. Development costs are estimated to total $77 million – $24.1 million, $31.1 million and $20 million respectively. At the Truffles Tribeca, pricing is particularly high. One-bedrooms—the dominant unit type—would ask an average $2.2 million, or $3,460 per square foot. Three-bedrooms would ask an average of $4.3 million, or $3,360 per foot. If it stays a rental, the gross potential rental income could climb as high as $21.9 million in 11 years, documents show.”

••• Five firefighters were injured during the fire the other night at 108 Leonard. “It took more than a hundred firefighters to get the fire on the 10th floor under control by 1:53 a.m.” The cause is still unknown. —NY1

••• A New York Times article on millennials who like plants (stop the presses!) says that TED Talks is based in Tribeca.

••• “About 6 weeks ago El Luchador, a popular FiDi Mexican outpost with its own Airstream trailer, closed without notice. I was surprised, as it seemed to do quite well. I just found out that they will be reopening in 2 weeks, complete with some upgrades and improvements.” —FiDi Fan Page

••• Daytonian in Manhattan on the history of 135 Reade, “home to the feisty Hannah Gouge in the 1830’s. She died here at 110 years old in 1845.”

6 Comments

  1. Truffles is built on leased land. If I recall correctly, by law it cannot go condo, only co-op.

    • Brokers trying to sell Truffles as a comparable to 70 Vestry is entertaining but unrealistic.

      “Three-bedrooms would ask an average of $4.3 million, or $3,360 per foot.” 1280 sf 3-Bedrooms in a neighborhood where that is a small 2-bedroom is not going to be attractive. So instead a buyer would have to spend a great deal of money to reconfigure units not just cosmetic upgrades.

    • But aren’t all the condos in Battery Park on ground leases?

      • Battery Park is one of a few exceptions.

        NY Real Prop L § 339-E (2016)

        12. “Qualified leasehold condominium” means any leasehold interest in real property intended to be used for either residential purposes, commercial purposes, industrial purposes or any combination of such purposes, together with any fee simple absolute or leasehold interest in the buildings and all other improvements which have been or at any time hereafter may be erected upon such real property, which has been or is intended to be submitted to the provisions of this article, provided that, on the date of the recording of the declaration: (i) the battery park city authority or the Roosevelt Island operating corporation is the holder of the tenant’s interest in such leasehold interest or (ii) the Queens West development corporation is the holder of the landlord’s interest in such leasehold interest or (iii) the Brooklyn bridge park development corporation is the holder of the landlord’s interest in such leasehold interest, or (iv) the New York city educational construction fund is the holder of the landlord’s interest in such leasehold interest for property located in the borough of Manhattan, in the city of New York, bounded on the east by Second Ave, on the west by Third Avenue, to the north by East Fifty seventh Street, and to the south by East Fifty-sixth Street.

      • See also:

        11. “Property” means and includes the land, the building and all other improvements thereon,
        (i) owned in fee simple absolute, or
        (ii) in the case of a condominium devoted exclusively to non-residential purposes, held under a lease or sublease, or separate unit leases or subleases, the unexpired term or terms of which on the date of recording of the declaration shall not be less than thirty years, or
        (iii) in the case of a qualified leasehold condominium, held under a lease or sublease, or separate unit leases or subleases, the unexpired term or terms of which on the date of recording of the declaration shall not be less than fifty years, and all easements, rights and appurtenances belonging thereto, and all other property, personal or mixed, intended for use in connection therewith, which have been or are intended to be submitted to the provisions of this article.

        […]

        14. “Unit” means a part of the property intended for any type of use or uses, and with an exit to a public street or highway or to a common element or elements leading to a public street or highway, and may include such appurtenances as garage and other parking space, storage room, balcony, terrace and patio, but in no event may utility facilities such as those for water or sewerage treatment or power generation appear as single units.

        […]

        16. “Unit owner” means the person or persons owning a unit in fee simple absolute or, in the case either (i) of a condominium devoted exclusively to non-residential purposes, or (ii) a qualified leasehold condominium, owning a unit held under a lease or sublease.

  2. If I’m not mistaken, TED is actually in Hudson Square, on Hudson just above Spring.

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