New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-19
SNUG HARBOR LEASES.
REAL ESTATE MEN INTERESTED IN
FIFTEENTH WARD GROUND RENTS.
LARGE NUMBER OF THE ROBERT RICHARD
RANDALL ESTATE HOLDINGS TO COME UP
FOR RENEWAL-HOw THE PROPERTY
HAS INCREASED IN VALUE.

RANDALL ESTATE HOLDINGS TO COME UP
FOR RENEwAL-IIow THE PROPERTY
HAS INCREASED IN VALUE.
Owners Of real estate. trustees, managers.
agents and lessees Of property adjoining the
estate left by Robert Richard Randall and held
by the trustees of the Sailors Snug Harbor are
greatly Interested in the renewals of a large
number Of leases on that estate which expire
this year. on the rate at which they are re-
newed will depend to a large extent the rental
value Of the adjoining property, and the next
regular meeting of the Snug fIarbor trustees,
which will be held in March is expected to have
an appreciablc effect on property values in the
Fifteenth Ward.
The Randall estate. which comprises twenty
acres. one rood. thrty-four perches and l32
feet of land known in the oden days as the
Mimic farm. was decided to Captain Randall on
June ,. 1890 by Charles Frederick Hans Bruno
POclnitZ for a consideration Of $1,000. This land
is held in perpetuity by board Of trustees Gre
ated under the will If Captain Randall, and in
corporated on February .. 1906. which consists
Of the Mayor Of New York. the Recorder of Cen
eral Sessions the president of the Chamber Of
Commerce. the president and vice-president of
the Marine Society and the senior ministers Of
the Protestant Episcopal and Presbyterian
Churches in New-York. The board is now COM
posed Of Thomas +. Gilroy. Frederick Smyth,
Charles $. Smith Albert Spencer, Austin Jayne.
the Rev DR.. Morgan Dix and the Rev. DR..
Howard Duffied. with Charles S. Smith as
chairman of the board.
The property is an rregularly-shaped tract IN
the Fifteenth Ward. beginning at the northwest
corner Of Fourth-ave. and Tenth-st. and bound
ed by Fourth-ave, East Tenth-st. Fifth-ave.
and Waverley Place. its major axis ending at the
easterly corner of Fifth-ave. and Waverley Place.
facing Washington Square. The map ot the
property shows 20 lots. of which twenty-three
are occupied 10y the big Stewart retail drygoods
building at Broadway. Ninth and Tenth Sts. ana
Fourth-ave this being the largest individual
leaschold Of the estate Other broadway hold
ings are the sites of the Sinclair House, the
Carter Building, the stores occupied by Daniel
& Sons. and other we-known houses. the num-
bers running from 7i3 to 1S5 inclusive.
THE PRESENT INCOME FROM THE ESTATE
The ground leases are all for terms Of twenty
one years the lessees being liable for all taxes.
assessments betterments etc, Of every descrip-
ton To this fact may be due the apparently
small income derived from. the ground as COM
pared with its value. According 10 the report
Of the controller. Thomas Greenleaf, for ls92.
submitted to the board in March, 1873 the m
come of the Snug Harbor from rents of land
held by the trustees was $3G6O2i -s the total re-
ceipts being $i6}.309 % Taking 100000 as the
income from the Fifteenth Ward property, ng-
uIes of much interest 70 other property-owners
are brought out. About one-third Of the leases
from which this income was deriN ed were made
twcnty-one years ago in 1913. when values OF
almost everything i'm New York. including land.
were in an unsettled and demorazed condition.
The leases provide that renewals shall be al
not less than five per cent the valuation of
the land, this valuation generally being fixed
the trustees. At this rate $3u00o0 would rep
mt estate valued at $6,OO0OoO. Well-in-
r,.se = rc.is estate mon that t- and Is To-
day worth at an extremely low estimate $l2OOOOOO,
or double the valuation Of twenty-one years ago,
and now comes the question. viii the trustees
endcaVOr to make this increase in value DIlng
a corresponding increase in rental from the
leases which expire and will come up for re-
newal this year?
Many Of the tenants are satisfied that the trus-
tees viii continue the conservative course pur-
sued by their predecessors and point 70 the
fact that few renewals have already peeh
madn on some of the Clinton Place property at an
advance of only : per cent on the figures of the
last term Others are Of the opinion that these
figures are not To be- taken as a guide. as the
Clinton Place property is bounded on all sides
by other lcaseh bid land. and II consequently
less affected by changes In value than that which
faces or adjons land which may come on the
market for sale. or is affected by the changes
incident - the fluctuations of the retail trade.
PROVIDING FOR ARBITRATION
Aclausc in the leases provides that in case of a
dispute as to the value of the land. the value
shall be fixed by arbitratcys. one to be chosen by
each side. these two. in case of disagreement.
To- select a third whose decision shall be final.
These arbitrators must be owners OF property
adjacent 10 the Randall estate. When the valu-
alton is fixed in this way the trustees have the
option of purchasing the building at a ngure 10 be
decided on in the same manner or renewing the
lease at , per cent on the determined value. As
an example of the business methods of the trus-
tees. it may be- said that at the last occasion
of a dispute the price fixed by the board was
increased by the arbtrators. and the difference
increased the rental 10y $50 year
As the details of the business Of the Snug
IIarbor trustees are jealousy guarded and as
many of the leases are not recorded, that being
at the option of the lessees. exact information
as 10 the value placed on the property for rental
purposes is diiticult to obtain. but ii Is known
that to tenants who have erected propose 10
build fine structures the land low rates are
made. The Stewart Building for instance. is
assessed for taxation at $l05000O. which would
represent market value of considerably over
s. 600 900. \ we-informed real estate broker has
within "A week appraised the land value of the
block. which has a Broadway frontage of 1s4
feet at over 81 500 Oc0 > per cent which would
bo SO 900 an annual ground rent, exclusive Of
other charges. which would be rather "A heavy
burden This appraisal made as a means
of illustration. the ground lease of the plot
having some years to run at a much lower figure.
Altogether. the real estate men of that part of
the city, while confident that the Snug Harbor
trustees will not attempt unduly to increase the
rentals OF land held by them. are looking for.
csion of "A question which has an important
bearing on their own property.
CITY AND WATER CONPlNY At ODDS
Kingston y Y Ian is tSpecaD.-rhe impend- !