The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-10-01
City Real Estate.

Npiii' pI our contemporaries HuNt vi idNt
painted the future Of New York real estate
in very rosy colors, but the man who owns
mortgagcd property and is compelled TO
realize or go under takes comparatively
very little interest in the probable prospec-
tive value Of the property one, two, or
three years hence.
That real estate, as n general thing, is
now very firmly held, and, except in the
case Of weak holders, not pressed for sale at
going rates, is universally admitted Dur
ing the past four years enormous quantities
Of real property have been sold at fore
closure sales. 1t has mostly gone into the
hands of mortgages, at prices utterly
rulnous to the owner Of the fee. Property
so bought pays, if improved, from ten 10
twelve per cent. net on the investment
Where unimprovcd, and situated in choice
locations in the building district, it can even
now be sold at a handsome profit TO specu-
lative builders, who are again in the market
as buyers.
The whole area from Sixty-fourth to
Eghty-sixth street, between Madison
and Second avenues, is being rapidly
covered with bricks and mortar, and
presents n scene Of great activity. Capital
weak holders at from 33l to 90 per cent. less
than they cost six years ago the owners
having in the mean time lost interest and
paid taxes. In most cases. these buyers
sell Immediately at a considerable advance
TO speculative builders, making a building
loan, which is paid in installments rs the
building progresses. Those capitalists,
backed by shrewd lawyers, who have Of late
turned their attention to this matter Of
buying lots low for cash and reselling them
with loan, have found the business moro
lucrative than any other safe mode of in
Vestmcnt or speculation. 1t is simply a
way of investing money on first bond and
mortgage at seven per cent, with the adj
ditional profit gained on the sale Of the
lots.
While most OF the building now progress
ing in this uptown district is being done
on building loans, many owners of land
in that locality are taking advantage Of
the present low price of labor and mate
rials to improve their lots rather than sell
them for half what they cost. Meantime
though it is generally conceded that real
estate Which can be Immediately made
available for profitable improvement, must
rise from the ruinous prices established by
foreclosure and other forced sales, the rise
will be slow and gradual. A better feeling
undoubtedly prevails all around, and choice
real estate is more firmly held than at any
time during the last four years. Recent
sales Of dwelling house property in the
neighborhood of Fifty-scvcnth street, be-
tween Lexington and Fifth avenues, have
been made at very satisfactory prices.
Thara l. inst al -. a IN pptI-1tu1 lauutlI
for brown-stonc houses in the fashionable
district. New York will be very full this
winter. We hear Of pending negotiations
for the purchase Of one or two fine pieces Of
Fifth avenue property. All this looks
healthy, and gives promise of immediate 0c-
tiyity in the real estate market.
As regards Broadway property, between
Canal and Fourteenth streets, most Of
which is held by wealthy holders, and
so much of which stands empty, it has
suffered not only from the general dcpre-
citation of real estate all over the city, but
likewise from the permanent loss of the
elegant retail trade, which gave it value,
and which has followed the uptown move
mcnt. The short space on Broadway be-
tween Seventeenth and Twenty-third streets
is, and will be for the next ten years, the
centre OF the most profitable retail trade
in the city while from Twcnty-thlrd
street to 1hirty-fourth, Broadway even
now is alive with movement, business, and
activity. Broadway below Fourteenth
street is comparatively dull after dark
above Fourteenth street it is alive with
people and ablazo with light. These simple
facts, with which all those who frequent
this part of the town are familiar, of them
selves explain the difference in value and
rental Of Broadway property above and
below Union square.
without respect to the future we may
say that real estate in this city has reached
and passed the lowest point; that there is a
more cheerful feeling abroad; and that phi
waite sales Of both unimproyod and inn
proved property can be effected at hard pan
prices. This we could not say six months
ago.
" hat COmuplled Him !