The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-10
Low Values and High Rentals Make
Ownership in Midtown Section Desirable

-
the safest OF investments by Edwin II.
Hess. president OF NJ. & L. Hess, one
of the oldest real estate concerns spe-
cializing in commercial property in this
city. Mr.. Hess said that permanently
owned realty can be made TO earn
greater income than any other invest
ment that he has known or heard about.
In expressing himself on the great posi-
bilities Of realty Mr.. Hess had in mind
the midtown section. that between
Fourteenth and Thirty-fourth streets
This section and the blocks to the south
as far as Canal street have deprecated
more than any other part of the city.
In view Of this II Is interesting TO note
the reversal that has set In In these
neighborhoods OF low values. 1t might
be said and without danger OF censure
that more profits have been secured
from the sale and resale of realty In
these parts than any other on Manhattan
Island. Rentals are substantial, and
figuring values as the market is prone
to do, fees in the midtown district
should be very much higher
III you invest your money in Govern
ment bonds said Mr.. Hess, you are
protected by the greatest security pos
sible. You receive about 4 per cent
interest. II you invest in a modern
business building you can receive IL per
cent on your money with just as great
security as the United States Govern
ment bonds offer. being that the real
estate is an integral part of the assets
Of the Government. You may credit
your interest account with the 4 per
| cent and amortize your capital With the
remaining 10 per cent, and In ten years
the income would still be received even
though the investment had been paid
back in It's entirety.
'Theee properties should, however. be
purchased and owned az permanent In
vestments. and they can be made to re-
turn q larger. safer and more perma-
nent income than any investment In
the world II the investor will conduct
the physical and scientific management
in manner that will be Just to himself,
the property and the tenants.
whether or not there be a temporary
depression, all mechanical parts must
be kept in perfect running order In
fact, any repairs or alterations thai
would forestan depreciation must b.
made at once. The attention given the
tenants and the efficiency OF the en-
ployees who operate the building Is Just
as important as In your office.
'"rhis Is a good time to purchase sucf
properties because they have had many
ups and downs in the last ten years
mostly downs Mortgages have beer
materially reduc ed and have In the MAR
been placed on n basis upon which
amortization is compulsory and in com
paratively small payment each year. The
rentals have been increased to fail
but not excessive basis.
1.-THE coming law permanently prohib
Its the possibility OF tenants discardint
locality at will. The Save New Yorl
Committee augments the activities o.
the coming law with still more drastic
rules for the benefit Of the retail sec
ton and the city at large.
The lending institutions. which, b,
the way, are responsible for buildini
conditions in general. have learned tina
II is not wise to build unless the SUGGEST
OF the new operation Is assured, ant
that other localities will not be mad
to suffer. Thus. this phase Of the sit
uation is safeguarded.
II see no reason for a boom in rea
estate, nor do think that we should
have one. SEQ no need OF more bust
ness buildings. The demand has jus
about reached the supply. The end o
the war will automatically furnish al
the additional space that may be need
, ed for expansion by releasing for othe
purposes what is now being used 70
office and wareroom purposes or course
this process WIFI be very gradual an,
practically unnoticeable to the genera
public.
properties in the midtown section
/, between Fourteenth and Thirty-fourtl
J streets surely have great possibilities
in addition to the present substantial
income basis upon which they are Of
: fered. II
} such corporations as the Western
, Electric Company and the Lggett 4
Myers Company and many others hav
selected vast areas Of floor space 70
{ their executive Offices in tho neighbor
: hood of Broadway and Twenty-firs
: street.
ION Sixth avenue and on Twenty hirc
street, where a few years ago the own
ers were panlc-strlcken upon the re
moval OF the large retail stores tn
{ buildings now are completely occupied
: On Twentythird street rentals have in
, creased 30 that now the properties ar
, mostly upon an income basis.
II Fourth avenue retains it's staple an,
substantial character. not only as to II
, investment possibilities but also as I
: Its tenancy, which excludes all manu-
featuring.
Madison avenue on the other hand
has many large buildings occupied almos
. exclusively by manufacturers and by tn
l silk industry, which do not manufacture
ut Is not my purpose to give the I'm
a.. preston that any improved cuisines
I property may be purchased safely 70
i investment The construction, both a
: to its being substantial and practica
v also the future lighting conditions, tn
v mortgage conditions. &c. are all neces
y sarily TO be considered and must b
8 judged by an e tpert."