fascinating new listing at 106 Spring
Unit 5S at 106 Spring Street sounds like a terrific loft, and is new as of Monday in our system. 2,200 sq ft in pretty much beautiful downtown SoHo offered for $2.65mm. The maintenance of $1,875 is said to be 50% deductible, but that’s where it gets interesting.
Erica Glasser at PruDE says “shares in the retail space … give share holders at least $30,000 per year and opportunity for more”, which makes me wonder about the 80/20 rule (see IRS rules for coops – beware the 80/20 rule)….. According to Ms. Glasser, it appears that this coop has set up the legal stuff correctly from the beginning, to permit shareholders to receive (and pay income tax on) significant retail rental income without disturbing the IRS Section 216 “pass through” benefits of owning coop shares.
too much income can work for coop shareholders
Any buyer would be sure to confirm that, of course, but my guess is that this building is a true “condop”. Not a “coop with condo rules”, as a condop is commonly and informally defined, but a two unit condominium, where one unit is the commercial space (owned by a corporation) and the other unit a residential coop (owned by the same resident-shareholders that own the other corporation). A brilliant and effective mechanism for dealing with high-income producing properties in a coop setting – when it is done right.
Meanwhile, back the actual loft…. No bragging on the listing about the finishes in this 2 BR (1 interior) + 2 bath unit, but the layout looks pretty functional. (That interior bedroom aside.)
The last sales in the building that I see were in 2005. #5N (which was said to be 2,300 sq ft) sold in November 2005 for $2.075mm. #2S sold in January 2005 for $1.6mm. What does that say about the price of #5S? You go and tell me what you think.
For what it’s worth, I happen to like the candy-colored décor….
© Sandy Mattingly 2007
[Feb 13: Shout out thx to Curbed for some link love on this posting (On the Market: Kandy-Kolored Tangerine Baby)]
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