I can’t see anyone buying the building site right now for $100 million especially when we are not even sure how high they will allow the next building to be. THe value of the land is dependent on the number of apartments the developer can sell. The building that collapsed had 12 floors and 136 apartments. It’s doubtful the city will allow the next building on this site to be the same height or greater resulting in fewer apartments. This will mean that each coop would cost $1 million just for the land, but coops in that area go for as little as $200,000 to $300,000.00,
There is going to be a large drop in the value of Coops in this area for the following reasons:
1) Many owners feel their building is going to collapse and want to sell before it does.
2) Many building are in poor shape and the owners feel the cost of repair is beyond thier means.
3) Coop owners who are on fixed incomes will see maintences charges increase as insurance and inspection expenses continue to rise.
4) Buyer may consider the area too risky and look for coops in other areas.
In the short term the price of coops should drop as there will be too many sellers and not enough buyers.
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