New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-10
THE NAVARRO FLATS SOLD.
JOHN J. McooMB BUYS THEM ALL IN.
lie SAYS THE ORIGINAL OWNERS MUST PAY RENT
NOW OR GET QUIZ


The big Navarro Flats, facing Central Park, which
usually pointed out to sIghtseers as tho larses'
dwelling houses in the world, sold at auction on
the Real Estate Exchange yesterday afternoon by d.
p Ingraham Co., under foreclosure of two mortgages
Ono man did all the bidding and the disposal OF inc
great property only took few minutes, leaving Jonn
j. McConb sole proprietor of the fats
Tho history Of the Navarro caestate speculation
the failure Of the original plan. the complications
arising from various loans, the consequent litigation
and the final result, form interesting history. IL
is nearly ten years since Jose +. DE Navarro nrs'
conceived the idea of constructing a number Of apart
nent houses near Central Park. After the Original
plan had been developed he proposed tho erection Oh
a building by a number Of people, on kind Of COM
munistic basis The cost of the construction ana OF
the ground was to be borne by the subscribers, anu
after tho completion Of the flats each subscrper was
TO be absolute owner Of his apartment Iho
organization actually formed, under the naho VI
The Home Club, and was ready TO begin WORK In 1000
About 81 900 600 to be expended for eight DIu
ings which would accommodate about 100 families
The membership Of the club was not great enough to
meet this amount but Mr.. Navarro agreed TO be re-
sponsble for tho deficiency taking his own risks on the
probability of selling the flats after completion
In 1884 tho Madrid, Lisbon, Cordova and Barcelona
In Fffty-ninthst begun, and 10 turned out tnt
the number Of individual "proprictors' was great
dsadv antage. Each wanted certain changes III mo
architects plans and the cost of the first four Dua
ings ran far ahead Of the estimate. Before tho iour
had been half completed The Homo Club had to Dor
row money. association was formed lnue-
pcndcntly by outsiders, under the name Central
Park Apartments Association The latter undertook
10 complete the buildings, though The Home CLUB was
still responsible for its share. The combined asso-
Citations then borrowed from the Mutual Life lnsur-
ance Company the sum Of $1.04O,OOO, giving nrst
mortgage the property. This sum was expended
and there was still shortage second mortgage was
then given to John J. McComb for loans of S1oo,ooo
on each Of the four houses, total Of 100000 The
first four buildings therefore, when completed, with
cut finishing the interior. had alone cost, without In
terest, 81 $40 900 moro than the estimate.
In 1885 the second four fats, the Granada, sala'
manca, Valencia and TOlosa, in Fifty elghth-st "oIo
built IN tho same way. In this case The Navarro
Flats Construction Company was added 10 the otner
two associations. The New-York Life Insurance Com
pany advanced $685. 900 on first mortgage and John
j. McComb loaned 100000 as before.
NOW THE TROUBLE BEGINS.
Tho actual trouble now began. The construction
companies had interest to pay on S3,2oo,oOo' anu
still the apartments not ready for occupa'Ioh'
No one would lend additional money on third mort
sage. and In this emergency Mr. McComb, realizing
that with the money he had in the concern he could
not afford TO have the whole scheme fall, offered 10
complete the buildings without further security TIC
therefore spent additional S65O,OOo on inc his'
four and $3.50 900 on the second four apartments
Tho latter rented readily and realized enough 10 pay
taxes insurance and interest on the mortgages Inc
ability to do this did not last long. however, ana the
insurance companies were not inclined to countenancs
any delinqucncies.
On December o. 1886, the Mutual LIE lhsuranco
Company ioreclosed, the amount Of It's mortgage nav
inr swelled with unpaid interest and expenses, from
81 o4o.ooO TO Slo7O,OOO. On April z, 1887, the
Now-York Life Insurance Company also foreclosed' 10
mortgage having grown TO Sl,O3O,ooo. Ihese wv
Companies combined their Interests and were about u
sell the apartments when Mr.. McConb again aP
peared on the scene 1t plain 10 him that INC
proposed salo would leave him without an opportunity
10 recover any of his own money. lie pioposeu ~
the insurance companies delay until he, 100, cou"
get legal right to SELL but the companies were tired.
Of having over So 600 900 unnvested, and offered to
stop the saIo Il Mr. McComb would pay the mortgages.
This was DONE and the insurance companies received
check for s2,3oo,Ooo, while Mr. McComb obtained
possession Of tho first mortgages, already ioreclosed'
and, with them, the right to sell.
In the meantime, the security on the second mort
gage loans consisted only in an issue OF bonds 90
posted with tho Central Trust Company, on which
interest was paid by Mr.. McComb for time. Inc
mortgagcrs were delinquent in this case, too, how
ever and the mortgage by accrung interest and taxes
grew from fl 100000 to 81 ,G61 900 Mr.. McCOmD
now sued for possession Of the mortgages ana gut
them lie was now prepared to foreclose everything
and gave notice of the sale which occurred yesterday
AN ARRAY OF BIG FIGURES.
The only thing remaining be done was to secure
himself for the final expenditure of S1ooo,ooo, COW
ering the finishing of the buildings. For this amount
he obtained judgment against the construction eohi-
panies but has not as yet, been able 10 make col
At no
amounts OF the first mortgages, and. in addition, the
amounts Of the second mortgages He hrst, there
fore bid 300 900 for the whole apartments, and be-
Sides for the Madrid 5000 900, Lisbon 100000 Cor
dova 5000 600 Barcelona 100000 Granada S21o,ooo'
Salamanca $500 Valencia S2l470O Tolosa S21''-
500 Total ,661 coo. The buildings have cost him
thus far:
second meftgaSes with unpaid Interest etc 16G1o0o
Expense OF finishing buildings mo security ,oo ooo
with interest ''iOO,OCo
ro.,, IS o0i. 900
Tho cost Of The buildings without Interest, was
about &c. 100000 The property is now entirely In
the hands Of Mr. McComb, with the exception OF
passagcway entering the block on the Fifty-nnth-st
side This passaeeway was not included In the deeds
for the ground occupied by the buildings, but was
spccialy acquired later. 1t is still owned by the
construction companies, but Mr. McComb has mort
gage on 10.
uresent condition Of things going on, the apart
n.nts themselves wero nearly all occupied. There
mr., 1913 nats in tho buildings, and an idea can be
formed as to the size Of them when 1t IS CONSIDERED
that one Aat has a useful surface Of 10000 Siuaro
feet and therefore, equal in area to thai pro'ueu
Nv a twostory building covering two city lois Inc
fats contain from fourteen TO twenty rooms ny emf
rent for from 81 700 to $4,000 year. AT PIpson,,
I94 Of the Ios are occupied, some OF them ny orsaA
members Of The Homo Club Who souSht The nt tronbe
the nronyieforsS were compelled TO bear pro rata,
the expense of maintenance and |" rI pc
the taxes and interest on loans -.
we 80 lone amounted FOR each Of the hat-owners
70 GOOD rental, and the money originally invesieu'
therefore was lost without having eafleu any III.
No deed could be eiven the Home CLUB men I0r M
purchases and their Investments were fecottcu III
form of receipts authorizing the possession Oh ~ INV
described apartment, OH tho cohditlon tia' '"' f-