Penmark Property Advisors, LLC

FAQS

We are developers starting a new project. What input can you give us?

While we provide the budget for the Prospectus, it is based on many factors. These included whether it is a union or non union building, the size of the staff, the amenities that are on the premises, type of HVAC used, etc. Our years of experience aid the developer in making these decisions consistent with marketing the project. We know what the operation of a swimming pool in a New York City building really costs. How many porters are needed to keep the common areas clean. In addition, design issues such as concierge, storage and staff spaces are often omitted from architect and engineering designs. Again, our experience in the industry helps us to guide developer toward a more successful project.

 

Our cooperative is considering adding a doorman shift. What advice can you give us?

If you are a union building, once you add an employee it is often difficult to revert back to your previous status. New Yorkers are increasingly demanding more services in their buildings and are willing to pay the addition in common charges or maintenance that comes with these services. The presence of additional services may increase the value of the units so long as the additional costs do not bring the units outside of the market ranges. In 2013, the “all-in” cost of a doorman shift is $75,000.

 

I am looking to buy an apartment in a condo with commercial space. What are some of the things of which I should be aware?

Remember that the quiet card store that is there now may be sold to a bar or a restaurant. Bars can create noise disturbances and restaurants use large quantities of water. You as a purchaser may have no control over either of these uses. The first will be a quality of life issue and the second, depending upon the condo documents, may be a monetary issue.

How do I find the status of Local Law 11 with respect to the building in which I live?

Unfortunately, the board has no obligation to disclose the report to the unit owners or shareholders……

What should I look for in the prospectus, board minutes and the financial statements in an established building?

While we are not giving legal advice, from the property management point of view a purchaser should check that the building has a reserve fund. Since the financial crisis, the government sponsored loaners are requiring either a 10% budget line item or a capital reserve study. While purchasers generally compare maintenance or common charges among buildings, assessments may be the real equalizer. Look for them in the financial statements. Always check the footnotes. The prospectus for an established building developed 40 years ago be irrelevant. Still, the purchaser must check that the land under the building is owned by the coop or condo. The special risks section is still important. In the last few years, Board minutes have become “sanitized.” They no longer contain “ The board considered the constant leaks in the A line…”