New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-05

Cost Calls for
Higher Rentals
Builder of Apartments ON
Upper West Side i'm Analy-
sis Shows Big Sum Re
quired i'm Building To-day
Favors Tax Exemptions
Under Present Conditions
Few Able or Willing to
Build Flats, He Says

Anthony Campagna, Of Palermo
Bros, the we'll known builders Of high
class apartment houses on the upper
West Side, has prepared an analysis
showing why high rentals must be
charged to meet the cost Of erecting
these houses nowadays. He tells Of
the great increase in cost of building
to-day compared to q few years ago
and the trouble in obtaining building
loans. He is of the opinion that no
law can help toward relief in the great
home shortage The only way the city.
state and nation can be Of benefit he
says, is to exempt new buildings and
mortgages on them from any and all
taxation.
Joseph Palermo is president of the
Palermo concern, which is now erecting
seven apartment houses on the West
Side, from list to 147tn Street. These
houses are six to thirteen stories in
height. representing total outlay of
more than $5,o00,0oo, it is said. Mr..
Campagna recently started on short
vacation to Europe. Before sailing he
annol/.ccd that on his return he and
his associates will open Offices at 200
West Seventy second Street, and if
conditions warrant it, work will be
started on more new apartments. In his
Cost of Apartment Building
"A monthly rental Of $40 to $45 a
room, .pr $4,000 for four-room apart
ment, in new siN-story elevator house
on Washington Heights sounds exor-
bitant, and it is professionally high
rent. In order to satisfy the public as
to what should be a fair monthly rental
a room in good house of this type
built to-day | have analysed the cost
of operation for each room.
II have taken for basis large unit
with one elevator, containing 1899 rooms
and floor area of about 1000 square
feet, corresponding to the percentage
allowed by the law on an inside plot
charged on the actual cost of the
building plus 10 per cent profit, and the
value OF the land has been placed at
q bargain
"a six-story apartment, for which
contracts were awarded last winter, is
costing with carrying charges but no
overhead, at the rate Of exactly S2,875
front foot. Prices of basic mate
rails, such as lumber, steel, sand, ce-
ment, plaster, lime, lath, etc, have ad-
vanced since that period on an average
of 20 per cent and substantial raises
have been granted to mechanics and
laborers Of every trade. But, consider
ing tho fact that labor seems to be
more efficient and a large unit is more
economical to build, have disrcgarded
the increases and made small dettrlc-
ton on the total, figuring the building
at S425,00O.
Land ......... OBSERVATION-DISCLOSURES. SIS 900
Huiiulns. ............... 495 900
~ Per cent profit on building ..... 1880
Total cost. ....................S 542. 500
ESTIMATED EXPENSES
Interest at per cent on first mort
gage of s325. 900 Observation-Disclosures. $4,000
trr..c'cst al per cent on equity... 1900
%o per cent depreciation paid
partly as amortization. ......... $500
taxes ....-.... Observation-Disclosures. 10000
-, attr .................. 500
up ...'''... ............... 400
'oat -. ................. 1000
alght and power. ............... 500
IouPP.ies ............. 600
BOILER. elevator, plumbing repairs
shades, awnings uniforms tele-
phone. eXterininators, etc..., 1900
51,a,ntlns ACKNOWLEDGEMENTS. $500
IDanase'heht ...-......... $500
reserve fund to provide for con-
tingent expenses. possible vacan-
cies and reduction in rentals. 1900
Iotai. ............ s7S.1oo
dividing this total by twelve months
and lS2 rooms we find that the expense