The flip tax for Southbridge Towers is paid by the seller and is set at 28% for original owners and 2.5% for subsequent resales. This tax is on the gross sale price of the property. To clarify, the 28% rate applies only to the first sale by the original owner. All subsequent resales or transfers at Southbridge Towers are subject to the lower rate of 2.5%.
Southbridge Towers – NestApple Guide (2025)
Go Back To Previous PageSouthbridge Towers in New York City provides excellent value in the heart of Lower Manhattan, featuring appealing prices and low monthly maintenance fees. Conveniently located between the Civic Center and the Financial District, Southbridge Towers comprises 1,650 apartments. They are across four 27-story towers and five low-rise buildings. Below, you can find important co-op policies at Southbridge Towers, including the sublet policy, pet policy, flip tax, and discounted parking for residents.
Sublet Policy
New shareholders at Southbridge Towers are prohibited from subleasing their units for the first two (2) years of ownership. According to Section 5.2 of Southbridge Towers’ proprietary
lease, after these two years, a shareholder may sublet their apartment for a maximum of two (2) years within any five (5) year period, with a mandatory two (2) year gap between subletting periods.
The coop does not permit subletting for less than one (1) year, and the subletting duration cannot exceed two (2) years. There is a monthly fee for subletting, which is equal to 100% of the basic monthly maintenance charge of the unit for the first year and 200% of the charge for the second year.
Shareholders who own two or more units cannot sublet.
Parents and children of shareholders may sublet their units indefinitely without incurring monthly sublet fees; however, they must complete the initial sublet packet and receive residency approval.
Flip Tax
Seller Closing Costs
Seller closing costs at Southbridge Towers are approximately 35% for original owners and 10% for subsequent owners. This difference is primarily because of the flip tax, which is 28% for original owners and only 2.5% for subsequent owners. To estimate your seller closing costs at Southbridge Towers, please use our interactive calculator.
Financial Requirements
Southbridge Towers requires prospective purchasers to have at least nine months of post-closing liquidity. This requirement was implemented via a motion approved by the board in 2023:
“Increase the minimum reserve requirement composed of liquid financial assets (excluding retirement accounts, unless the applicant is of retirement age) from three to nine months of their mortgage and maintenance to be available at the conclusion of the sales closing date, for all applications received after October 1, 2023.”
The board at Southbridge Towers recommends that no more than 30% of a household’s gross monthly income go to housing costs, which includes both the mortgage and maintenance fees. For instance, if the total monthly co-op maintenance and mortgage payment amounts to $3,000, the prospective buyer should have a combined monthly income of at least $10,000.
Discounted Parking
Residents of Southbridge Towers can take advantage of a significantly discounted parking rate of $148.12 per month at Seaport Parking (Quik Park/Icon). This rate is available to a maximum of 661 resident car owners.
Please note that there is currently a waitlist for this discounted rate, with an estimated wait time of one to two years. To join the waitlist, there is a submission fee of $100. In the meantime, residents can secure a reduced parking rate of $350 per month, which is still considerably below the market rate. Importantly, there is no waitlist for this option.
To qualify for either of these discounted rates, your driver’s license and vehicle registration must be registered in your name at your Southbridge Towers address.
In-Unit Washer and Dryer
Southbridge Towers does not permit the installation of in-unit washers and dryers. However, each of the 9 buildings at Southbridge Towers has a laundry room. The laundry machines are the responsibility of Hercules Corp and operate using a smart card.
Residents can obtain laundry cards at the Management Office or from the card machine in each laundry room. Funds can be added to the card at the refill machines.
Minimum Down Payment
The minimum down payment required at Southbridge Towers is 20% of the purchase price. This requirement is detailed in the Southbridge Towers Purchase Application instructions, which state:
“The non-financed cash payment toward the purchase price must be at least 20% of the gross selling price.”
Pet Policy
Southbridge Towers allows pets, but residents must register all dogs.
Gifting
At Southbridge Towers, gifting is allowed without a limit on the gift amount. Buyers must include a signed gift letter in the purchase application, although notarization is not necessary.
Children Buying for Parents
Children may purchase on behalf of their parents at Southbridge Towers, but both the child and parents must be listed on the stock and lease.
Co-Purchasing and Guarantors
Southbridge Towers allows both co-purchasing and the use of guarantors.
Storage
Southbridge Towers offers storage for rent; however, a waitlist of approximately 2 to 3 years is in place. To join the waitlist, there is a fee of $100.
Written By: Georges Benoliel
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.