The types of apartments Tribeca Real Estate has available for sale fall into two categories:
Co-Op: Since almost the introduction of pre-war buildings and brownstones in New York, cooperatives have been the preferred method of owning upscale apartments in Tribeca. In a co-op situation, an apartment corporation owns the building, with tenants purchasing shares of that building cooperation, entitling them to a space in the building. In addition to their own mortgage, “co-op shareholders” pay a monthly maintenance fee, used for such things as heat, hot water, insurance, staff salaries and the mortgage indebtedness of the building. Shareholders can deduct the building’s underlying mortgage interest and a portion of the building’s real estate taxes from their own personal taxes. The co-op is directed by a cooperative board, which must approve all purchasers of shares in the building as well as determine conditions for ownership or subleasing. The board looks at not only the prospective tenants, but also a “Board Package,” a packet containing significant financial information, such as income and assets, as well as personal and professional letters of recommendation. If a tenant is approved, the board also determines the amount of the purchase price that can be financed and the cash down payment. While a certainly difficult way to obtain one of the myriad homes for sale in New York City, a Tribeca co-op is well worth the investment and effort.
Condominium (Condo): The new buildings going up in and around Manhattan, even in a historical
district such as Tribeca, have ushered in the era of the luxury condo, a popular alternative to the co-op
or loft. A condo amounts to “real property,” rather than property shares, and the real estate company
issues a “deed,” as if the tenant was purchasing a house. While luxury condo-owners pay a maintenance
fee similar to that of a co-op member, it tends to be lower because of the absence of a building
mortgage. However, condo owners cannot deduct real estate taxes or maintenance fees from their own
taxes. The tradeoff is that condo owners have more freedom and flexibility. And they can finance up to
90 percent of the purchase price and sublease at will.
Don’t choose just any Manhattan broker to help you navigate Tribeca real estate listings. Please call or email a Tribeca Real Estate buyer’s agent for further information.