Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
Sitting between West Street and the Hudson River at the southern tip of Manhattan, Battery Park remains a residential community only a short distance from the Financial District. Construction began in 1980, and any residents in the area today would agree it was a success.
Battery Park City has a different pace and vibe from other parts of Manhattan. Landscaped squares and paths separate residential buildings, while a riverside promenade runs along the neighborhood’s western edge. Something made even more appealing by the sunset views over and cooled breezes off of the Hudson.
The entire city is rejoicing in a stroll along the promenade. And thanks to continuing retail and restaurant developments nearby, Battery Park City’s popularity grows.
Every building in Battery Park City sits on land owned by an arm of the State of NY. This arm (the Battery Park City Authority) “rents” this land to each condo or coop. However, different buildings have different terms regarding the “rent” escalations, usually a buyer’s initial concern.
While land lease buildings (the words “ground lease” and “land lease” are used interchangeably) have rent payments, not land lease properties have mortgages on the land upon with they sit, so those buildings still have payments to make. There are subordinated ground leases and unsubordinated ground leases.
The Sponsor then speaks about the eleven buildings located in Battery Park City that negotiated ground rent resets outside of the appraisal process:
Politics are also at play. And some appointees would like to remain in charge and may need support from Battery Park residents. Again, no guarantees.