Residents in 11 buildings at Battery Park City will be saving more $279 million over the next 30 years now that the Battery Park City Authority, a public agency that manages the lower Manhattan waterfront neighborhood, has voted to approve an agreement that would prevent major hikes in monthly ground rents that condo owners would have to pay, according to an article by Amanda Fung today at crainsnewyork.com.
"Under the agreement, which was first presented two months ago, the 11 buildings will pay $525 million in ground rents over the next 30 years," the article said, adding that "If the agreement had not been reached, condo owners would have had to $804 million."
Battery Park City is one of the few neighborhoods in the city where residents have to pay rent for the land that their building stands on. These ground leases, which were established in the mid-1980s by developers and the Battery Park City Authority, were subject to huge increases. "Ground rents for some buildings were scheduled to soar by more than 100% over the next few years," the article said.
"Because of the agreement that was finalized today, families in Battery Park City will be able to stay in their homes and will not be hit with the crippling financial hardships they would otherwise be facing," Assemblyman Sheldon Silver, who helped broker the agreement, said in a statement.
"This agreement ensures that Battery Park City remains the world-class community that it is and provides the kind of stability that lenders look for when providing financing to those who wish to move into Battery Park City," the statement continued.
The article said that "the deal now needs to be signed by the individual board presidents of each of the 11 building to become effective."
"Today's agreement demonstrates the Battery Park City Authority's commitment to ensuring long term stability and affordability for families who live, work and enjoy this incredible neighborhood," William Thompson, Jr., chairman of the board of the Battery Park City Authority, said in a statement.
"In 2012," the article continued, "ground rents paid collectively by owners in the 11 buildings were expected to spike 63% from this year's level, to $14.7 million in 2012. Under the new agreement, rent will now increase by 33% next year."
"Under the agreement, which was first presented two months ago, the 11 buildings will pay $525 million in ground rents over the next 30 years," the article said, adding that "If the agreement had not been reached, condo owners would have had to $804 million."
Battery Park City is one of the few neighborhoods in the city where residents have to pay rent for the land that their building stands on. These ground leases, which were established in the mid-1980s by developers and the Battery Park City Authority, were subject to huge increases. "Ground rents for some buildings were scheduled to soar by more than 100% over the next few years," the article said.
"Because of the agreement that was finalized today, families in Battery Park City will be able to stay in their homes and will not be hit with the crippling financial hardships they would otherwise be facing," Assemblyman Sheldon Silver, who helped broker the agreement, said in a statement.
"This agreement ensures that Battery Park City remains the world-class community that it is and provides the kind of stability that lenders look for when providing financing to those who wish to move into Battery Park City," the statement continued.
The article said that "the deal now needs to be signed by the individual board presidents of each of the 11 building to become effective."
"Today's agreement demonstrates the Battery Park City Authority's commitment to ensuring long term stability and affordability for families who live, work and enjoy this incredible neighborhood," William Thompson, Jr., chairman of the board of the Battery Park City Authority, said in a statement.
"In 2012," the article continued, "ground rents paid collectively by owners in the 11 buildings were expected to spike 63% from this year's level, to $14.7 million in 2012. Under the new agreement, rent will now increase by 33% next year."
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
6sqft delivers the latest on real estate, architecture, and design, straight from New York City.
