New-York tribune., 1908-04-12
FIFTH AVE. OUTLOOK
OLD And NEW VALUES.
Big Increase an Prices an EUery Part
of District Expected.
Walter c. Wyeison. .


Ten wears ago when inside lots the avenue
sold for from $500 s7eo front foot and stores
went begging $4,000 5000 year, the big retail
merchants hardly considered Fifth Avenue as
possible business location. and only cheap altera-
tions were found scattered here and there between
the old four story broWnstone dwelling houses
Small stores in the story buildings on the old
Paran Stevens estate property, at the southeast
corner S7th and Fifth avenue. then rented
from $50 TO soo month At that time the small
storekeepers showed q marked preference for the
side OF the avenue, and the rentals on the
west side showed far greater proportionate in
crease over rentals for equally well located
stores the east side than they do to-day.
Until recently both owners and tenants alike
were extremely slow realize the possibilities OF
development of what is becoming the greatest busi-
ness thoroughfare OF the country. 1t was only the
farsghted judgment of a few OF the leading busi-
ness houses the city in giving up locations fur
1her downtown where they had been established
for many years for building sites on the ave
nue. that awakened owners TO some idea of the
value of their holdings on the avenue That prices
paid in some cases when the movement began
about five years ago were excessive goes without
saying but the light OF present values, most Of
the property sold the beginning of the recent
advance was obtained bargain prices.
The avenue for many years was slower to change
its character than of the wide side streets.
and the sudden increase in values which finally
came with the advent of Altman. Tiffany and Cor
ham the avenue, and the announcement or the
plans for the mammoth uptown station of the
Pennsylvania Railroad with the consequent uptown
movement Immediately brought prices for Fifth
real estate 10 somewhere near It's true
value
A few large estates and other owners OF property
who could afford 10 retain their holdings reaped
handsome profits. but even during the recent IN
crease values the sales have been comparatively
Few. in spite of many hattering offers. the
majority of owners have preferred TO hold their
property for higher prices else 10 lease
responsible tenants for terms of twenty-one
years
Before Mr.. Altman purchased the block front
the side of the avenue, between 3ith and
35th streets. from the individual owners, the south
east corner of G4th street and the had
just been leased for term of twenty-one years
So go a year The old buildings this
plot, 593 feet in the avenue by 100 feet in o4th
street, were torn down and business structure
vas erected, which 10 the lessee large
profits and above the net rental and
penses. II is safe say that If this plot
in the market to-day unmproved 1t would com
mand net rental Of double the price The present
lessee obtained for I'm 1903. At about This time
the owners Of q plot the side of the avenue
between saith and 35th streets being 334 feet front
in the avenue by 80 feet deep, with 25-foot -
35ih street. obtaining $4,000 for the ground
floor store and basement The second story Of
this building which only about 90 feet deep
brought ia nominal rental The tenant in TINS
building 1902 offered the owners $425,D0, which
declined In 1905 the tenant offered $4,000 for
the property enly TO find that negotiations
llad just been closed with another buyer for about
tn price The property sold in con
nection with the New York Club, AT the southwest
corner Of Both street, lie club property bringing
s. 1850 The owners now erecting these
two plots large Office building, which is already
under lease
Numerous other instances OF sales and long
leases between saith and f2d streets occurred about
time. including the lease for twentyone years
OF The old Engineers CLUB between 25th and aGth
streets on a plot 81 feet front by 100 feet deep.
S2aep0 A year.
in connection with this movement many long
tablished business houses sought locations the
avenue south of 42d street. only to find the
prices had advanced rapidly that their business
did not warrant The rentals asked. that
ers refused either TO sell or lease. Among the
ers OF property below 42d street whose property
could be obtained the Goeet estate at
the southwest Of 37th street the Brick Pres
byterian Church, at the northwest Of 37th
street: A. A. Anderson. the southeast corner Of
Ssh street: the Wendell estate, 39th street, and
the block front the side of The avenue be
3sth and 10th streets the south half of which
leased by the Union League Club and the north
half OF which Is owned by +. ". Vanderbilt. The
largest Of the unmproved holdings in this section
those OF the Burton Brothers which includes
al Of the block front except the corners between
3sth and 59th streets on the west side OF the
nue.. and extending back about 200 the side
streets A great many offers, both TO lease and
buy this property, have been declined. In this
section offers high $4,000 have been refused
for twenty-five foot corner plots
In consequence Of the rapid increase in values
in the '30s." only natural business
houses should look for buildings the avenue
about 42d street, where both buyers and lessees
could obtain lower terms than prevailed further
south the The movement until three
four years ago, however, did extend far
above sd street. and It until after the
trustees OF Columbia College decided cancel the
restrictions against business on all their lessehold
property side Of the avenue between
md zig Syra
which had blocked business 9Th street, that the
prices began 10 advance 10 very near the figures
obtained below 42d street Since these restrictions
have been removed many buildings have
been erected the corner plots in the '40's" and
many Of the inside plots have been improved In
1s5 Of the westerly in the ''40s" being
25Kl0o feet leased for twenty-one years on the
valuation OF 5000, leases have been made on
unmproved inside lots at average Of $3.50 net
year. Plots with greater frontage command pro
portonately higher rentals good five story
alteration in the ''+0's." an inside lot when the
hooTs are rented TO separate tenants should bring
IN gross yearly rental Of about S26OG0 An offer
" ss,50l net year for a long lease on a five
ssss building IN the '40ss being p foot front was
recently made The owners have just concluded ne
gotiations whereby the tenant takes another lease
Of the property on satisfactory terms Two ad-
joining properties the west side Of the avenue
between 50;h and Dist streets being dwelling houses
on lots 2ss front. each held by the owners at a
rental OF 10000 year net, for twenty y-one year
lease While the owners Of property have
been disposed 20 make concessions on the
rentals for short term leases, there has been no
indication Of any decrease in tie rentals asked for
tWenty-one year leases.
The most recent sale auction Of Fifth avenue
properties IN the "4o's' was that Of ar estate at
No 64s Fifth avenue, old four story dwelling
house on plot p foot front adjoining the ,or,t
west corner of 4jth street. which brought gao 0Do
The sale Of the Lotos Club property 30 foot front