The sun., 1908-12-13
|THE REAL ESTATE HIRKETi
HOTEL METROPOLE LEASED
AT $4,000 A YEAR.

II Belongs to the Gee Estate and Has
Been Taken by the United Chemists
90. for ID Years--Slte Said to Be the
Most Ffeauoated IN Theatre District,
There was an unmistakable rect ss' ON
Of activity In the real estate market last
week compared with the week before
In many quarters this recession, while
regarded 40 more or less temporary. was
not unexpected. The first effects of the
liberation Of capital withheld before the
Presidential election have apparently spent
their force, the most urgent liquidation
has probably for the most part been ac-
oomplished and the closed season for
building operations is at hand. 1t is
altogether likely therefore that the trad
ing win be Of limited proportions during
the next two months. -
A good spring business. particularly
in the way Of building and consequently
In the way Of turning over vacant land
lie generally expected by professional
operators. but until then the prospect is
for market Of only moderate scope and
volume. Preparations for the spring
building campaign usually begin about
the middle Of February. when the buying
Of building sites and the placing Of build
ing loans are resumed In earnest.
There seems to be no doubt that con-
striotion work win be undertaken on a
large scale In the spring. The effect OF
q high tax rate In promoting building Is
sufficiently well known to warrant the
conclusion, and high tax rate Is just
now coupled with low prices for building
materials and an unusually wide distribu-
ton Of vacant land among speculative
holders. The capital Of these holders,
whether corporation or private operators.
is business capital. much Of it borrowed.
and has to be kept employed. and the only
employment open to 1t In the absence OF
any considerable investment demand for
lots Ii that Of building. A wealthy in
vestor may be quite willing and able to
pay taxes and assessments on vacant
land out Of bis income from productive
property, but lard company 10 not in
The sana position. II II cannot carry
ON its original business Of retailing lots
II is obliged TO improve It's holding In
order thereby to obtain an income with
which to defray carrying charges In
cludipg salaries, office rent, &o.. and to
provide dividends.
Perhaps q distinguishing feature Of the
realty market in the coming year viii
ing companies into investment companies.
Some of the biggest and most successful
corporations that have been retailing
suburban lots on the instalment plan
have already announced their intention
Of building apartmen houses next spring
for rent. while others will put up two
family houses and private dwellings
which can be rented IL not sold at once.
1t is quite evident that q corporation
which erects a group of 200 apar tment
houses at cost Of $4,0io000. as leading
Brooklyn company proposes to do. can
afford to underbid the average landlord
efreos % % Of p this prospeotive s building By % LARD
companies may be TO depress rents. but it
is believed that in the end the market will
be strengthened by the substitution of in
vestnent companies for purely speculative
concerns. 1t is building improvements
after all that add value to land. ~
The brokerage business reported last
week embraced few purchases Of bust
ness premises downtown in Pearl Canal
and similar streets and number of deals
in private dwellings. The transactions
IN property Of this sort were mostly for
the account of intending occupants. The
town lots fats and apartments. 1t con-
sisted largely Of barter and involved very
little ready money. Not q little OF tho
dealing uptown is liquidation by private
treaty. Lending institutions wishing TO
avoid public foreclosure sales are where
ever possible taking up delinquent prop
erty at private contract and turning it
over to professional operators at cost
By this procedure the lending institutions
do not figure publicly In the transactions.
which are known to the trade as friendly
foreclosures
The daily number Of transactions re- !.
ported from brokers' Offices fell OF In the
course of the week. Yesterday's budget
was perhaps the least important made,s
ever, lease of the Hotel Metropole at
Broadway and Forty-second street by the
Coe estate to the United Chemists Com
pany for sixty-three years at an annual
rent Of $4,000. The hotel. which ID a four
story building, has a frontage Of 6l.a feet
on broadway, SCI feet on Forty-second
street, 49.5 feet on Seventh avenue and
". i0 feet ON tho 5o;ittihisz, sz,;, HE The sitA
contains about 4,e0o square feet. The
lease was negotiated by Douglas Robin
son. Charles s. Brown a Co. tl4ar.4 +.
1t Is said that the Coe estate not long
ago declined an offer OF q, 000. 600, or $3.50
a square foot for the property. The corr
ner is probably the choicest OF its kind In,
New York. having not only three 'front.'
ages, two OF them on prominent Thorough.
fares, but being in the heart Of the theatre
district. Probably more people pass there
daily than any other point In New York,
not even excepting Twenty-third street
and Fifth avenue.