The Washington herald., 1919-04-29
REALTY. VALUES
!: SHOW INCREASE
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Holland Gives Figures to
Prove Upward Trend
In New York.


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: A plot Of ground at the corner Of
Broadway and Rector street. imme-
diateiy opposite Trinity Church and
It's adjacent burial ground, was Of
fered to Jay Gould In 1895 for 500. 900.
Mr.. Gould declined even to consider
the offer. He said that he preferred
to make his investments In securities
which would serve as q quick asset
which would be sold on the instant
ON the foor of the Stock Exchange. in
case he were in need OF funds. He
cared nothing for real estate. making
only such investments In 1t as pro-
vided city home country place for
himself and family. So also the VAN
derbilts. at least the Commodore ana
his son. William H.. disdained real
estate. They made such Investments
IN Il as were necessary for the New
York Central Railroad purpose and
for their city and country homes.
Today both Mr.. Vanderbilt and Mr..
Gould. II they were alive. would dis
cover that real property in New YORK
City may serve as a most profitable
investment. yielding quick and very
large returns in many cases
Two years after Mr.. Gould refus-
referred to for $500. 900. II was val
ued at u,50o.ooo This was in
part due to the fact that-a lofty
structural steel building had been
erected upon the land. A day or
two ago this land and the building
which stands upon IL were bought
BY the United States Steel Corpora
tion. through a subsidiary. upon the
payment OF approximately $4,000. 900
in spot cash.
Largest Real Estate Deal.
A plot OF ground. which was
owned few years ago by the Van
derbilts in the vicinity of the Grand
Central Terminal and was esteemed
TO be worth perhaps $4,000 is
now appraised at considerably over
t1.0000o0.
The purchase of the Empire build
ing. so called. by the United States
Steel Corporation would be perhaps of
more than local interest IL it were
generally known that the cash pay
ment OF 100000 Is presumably
the largest transaction of that kind
ever made for private property. GER
tainly In New York City. But there
are other reasons why this transac-
tion Is Of more than local importance.
II reflects the extraordinary activity
In real properties which has prevailed
now for severa! months and is likely
to prevail for a long Tine to come. II
means undoubtedly a great demand
for buildings. thereby making n large
market for building material and u
plentiful employment for labor.
Since the war began and especially
In the past year, several banks and
two OF three large corporations have
bought real properties in the finarci al
district and have done that because
OF the apprehension that rentals are
TO be greatly increased. But If rentals
In properties of this kind are increa sed
that furnished excellent proof Of the
growth of the financial district and the
expectation that prosperity. hereto
fore unsurpassed either relatively or
absolutely. Is to characterize that dis
trtcf, and therefore the entire coun-
try
lanes Stillman, who possessed a
wonderful capacity for foresight, did
buy for his bank. the National CITY
a building on Wall Street. paving ap-
proxinately 10000 for it. But that
was not private property The gov
errment held the title and when the
new custom house was built the gov
ernment no longer had need for this
property and was ready to sell it.
That investment has proved an ex-
cenent one and IL is presumed that
the rentals are sufficient TO meet the
interest upon the investment and thus
indirectly give the bank its large bank
ing facilities without actual cost
Many sharp Bargains.
anyone who desires to invest in real
time lease Is now cautioned by those
who are expert to make his bargains
as speedily as possible. For already
they are telling of experiences OF men
who thought they had entered into ar
raEgements for purchase or for rentals
only to fnd that someone else had
stepped In ahead Of them. One lead
ing, business man negotiated for the
rental OF country place for which
he was to pay at the yearly rate of
500. The bargain was made so far as
that could be done by word of mouth.
but the papers were not signed A
few hours before the agreement was
to be bound by written acknovledg-
ment. some one else stepped in and
offered nearly $4,000 more for the
lease. The offer was accepted and the
disappointed man found in his mail re-
turned to him the check which he had
given for 5000, for he was to pay the
full amount in advance.
At one time many wondered whether
overouildlng was not in progress in
the financial district. so that there
would be for time loss upon the in
vestments. since II was believed that
the buildings could not be rented in
full. No longer Is there any comment
Of that kind. The pressure of would
be tenants 10 very great and that in
evitahly has caused an increase In
rental
II Is reported here that a like con-
dition prevails in some OF the larger
financial centers of the United States.
And 1t 10 the common belief that the
country Il just entering upon an era
OF enormous real estate investment
and improvement which of itself will
encourage all industries which are oc-
cupied with furnishing building ma
terial and will give ample opportmi-
" for the employment OF labor. Real
estate investment usually follows a
boom In the securities market
Within a hundred miles of New
York and also IN some Of the larger
cities which are located at a greater
distance there now prevails a real
famine in small houses of a kind rent
able for from SIS to $40 a month.
Agents are no longer booking applica-
tons for rents of this kind. In many
OF the cities there would be profitable
investment II a hundred new dwell