The sun., 1908-12-27

avery pronounced shtfting Of this Ten
antry from Manhattan, particularly the
lowGR East Side, 70 the outlying bofonghS
especially 70 The Bronx. The oversup;
ply Of Bronx fats and tenements intended
Yor occupancy by 2 population Of clerks
which eiisted Q year ago has already been
taken up by emigrants from Manhattan
and quite recently, something Of revival
Of Gathouse building has taken place N
the northeriy borough.
A marked depreciation In rental values
has consequently been experienoed In
the Manhattan fat and tenement sections,
and Il In instructive 70 note that property
in theoe sections 70 the only kind Of Mad
haitian realty that has figured oonspioi.
ously In foreclosure .Raled. Furthermore,
the great bulk OF Il which has 30 figured
has been bought In by the holders Of mort
Cages for the amount Of the debt. IA
There are many reasons for believing
that property OF the sort In question
However, only one need be mentioned
here, namely, the extremely enective
competition Of the cheaper land adjacent
TO the Bronx subway. The principal
Fat and tenement section In Manhattan
comprises the easterly border OF tho
island from the Brooklyn Bridge 70 tho
Harlem River. It's transportation facili.
the subway supplies TO the easterly por-
uou Of The Bronx Heretofore The Bronx
has competed chiefly with the cheap
grades Of muitifamily housing But -
advantages In tho way Of inexpensive
land and good transportation are such
that II may equally we'll compete on 9
large scale as regards the better grades
OF housing.
Indeed composition in this line IL al
ready promised. Not long ago those
Of the best known realty companies
In The Bronx announced their intention
Of Jointly improving tract in the Hunts
Point district with six story elevator
apartment houses accommodating several
thousand families. The apartments are
to rent at o. q room a month. which is
the price now paid for fats in Manhattan
from, say. Fifty-ninth to Ninety-sixth
street, between Lexington and Second
avenues. The result OF competition on
this basis can hardly be open to doubt Is
From what has been said in the fore
going IL will be seen that the only serious
and at the same time extensive depre-
ciation in rental value that has taken
place In Manhattan is in the case OF fiat
and tenement property. Such depfecia-
ton as has been experienced in other
realty should be restored by q year or
two OF industrial prosperity. This pros
pect Is all the more logical when it is re-
called that with the exception OF the
lower grades of mu ltifamily housing
Manhattan realty is almost exclusively
devoted to utilities Of a distinctly urban
character and is therefore not subject to
competition from the outlying boroughs.
Meanwhile much Of the fat and tenement
property is on the East Side. tributary 70
the proposed Lexington avenue subway.
When that subway is constructed the old
fats and tenements there will no doubt
give way rapidly to expensive residence
housing which will be exempt from
suburban competition
The selling value OF real estate IL OF
course far less stable than is its rental
value. Thus the capital or selling value
Of a piece Of real estate leased at net
annual rent for long term will diher
according to the number Of buyers and
sellers in the market aud the returns
open to capital in other fields Of invest
meut than realty. The factors that
bave had controlling influence on prices
this year have had little TO do with rents
The main POINT which II seems worth
while TO establish in this connection ID
that absence Of desire to buy has not
been among the influences that cut down
prices. The pressure to sell was felt
In all classes OF realty. but at some more
or less moderate price reduction buyers
were generally found for nearly all kinde
OF property Thus in Manhattan real
estate Of the assessed value Of $4oe, ,isi 900
has changed ownership. as against ,au
exchange of SAIL, 100000 worth q year
ago. However, the property that vas
sent under the hammer represented
Ae has already been pointed cut. E sur
prisingly small amount Of Manhattan
realty except fats and tefiemente has
figured in foreclosure sales.