The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-02-23
2 A ESTATE NEWs.

Auction sales OF realty In which the oher-
,,ss realized A total OF a million dollars or
more have not been uncommon In the last
three years. But In that time there mas
been no successful large sale OF precisely
the Kind OF property that was disposed OF
AT the Peyton sale last week. whenever
such property as was contained In the Peyton
.chedule has been offered II has, a. a RUE
haan hid I'm by the owner or been sold at less
than market prices. East Side tenements
have formed the only conspicuous exception
N the statement that until now there has
heen manifested no demand in the auction
room for investment property. The seventy
ave parcels offered at the Peyton sale con-
sisted almost wholly OF small INVESTMENT
holdings OF a miscellaneous sort that con-
seryatiye and conscientious auotioneers
Rave been advising their clients to with
hold from the Trinity salesroom. Despite
.ome recent Indications Of an incipient m
vestment movement in the brokerage branch
Of the market, opinion was divided as 20
the reception that the Peyton sale wouso
,naet The reception proved to be more
favorable than any one had ventured TO
expect, and the sum total realized exceeueo
the appralsals OF the experts for the estate
The outcome OF the Peyton sale Is a. im-
nortant in its bearing on improved properly
az the King and the Bathgate sales. held IN
1DnlAIN lciffs " u -
oroperty. These two sales came at the oegih-
ling OF the revival OF the building industry
and dem ons,rated the existence OF an UNI
crpectedly heavy demand for lots suitaoie
for Improvement with apartments OF mats
rhe competition that was developed AZ those
saIe. established a new level OF values Tor
vacant land. and a long series OF notsoIy
srccessfnl auctions OF vacant lots followed
,shich carried the level OF prices still higher.
Meantime attempts to dispose OF miscel-
ianoous holdings Of improved property met
.i,b Encouraging results and since the de-
nand for lots in the apartment. Hat and tene-
nent house districts fell of on the enactment
Of the present Tenement House law last spring
little else than the routine business connected
witt foreclosure proceedings has been con-
Quoted I'm the auction room.
Because OF the one-sided character OF
the market during the past three years i'm
proved property has failed to rise in value
"a rapidly as vacant land. although excep-
,lons TO this rule must be noted In the case
OF East Side tenements. dwellings In the
Fifth avenue residence section. and property
in neighborhoods directly affected by pub
lie improvements. The rise OF values In
the fashionable residence quarter and In
neighborhoods affected by public improve
ments has been due chiefly. however, to
com petition on the part Of professional oper-
htOTs OF OF lutfnuihg OCCuphuts " private
houses, and has taken place in spite OF the
absence OF a general demand for invest
ment property in the narrow sense OF the
term. which excludes realty not held pri-
msrily for the sake OF its rental returns
The Peyton sale Is the first auction event
TO Indicate anything like a general investment
demand for the ordinary run of fats and
stores In other than speculative neighbour
hoods. and. as is frequently the case after
q period OF depression In any class OF realty.
Unexpectedly high prices were obtained.
showing that while owners and appraisers
have been marking down quotations to over
come the unreadlness OF the investing public
TO buy. the property has really been absorbing
value from the growth OF population and the
reestablishment and expansion OF industry.
In view OF the high prices prevailing for
bonds and stock and the low returns which
they yield at current quotations. the logic
OF the situation points to a general investment
movement In improved realty. where fee
values are low compared wits vacant land
and where net rents are steadily rising. The
Peyton sale appears to show that a beginning
In the direction OF such a movement has been
made. Though the prices obtained were
considered high they generally show a gross
return of from 0 TO o per cent. on the rentals in
dicated in the book map. and will probably
yield a net return of 4 to 8 per cent. with
probability Of further Increase. particularly
as taxes are expected 20 fall under the present
ctty administration