The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-07
by wINFRED WATSON,
Director Of Harris. vought 8 CO.

NSStOF VI HATTIE ought q 70.
Tenants are just beginning to realize
that With careful planning and O small
amount Of capital they may enjoy all
rights and privileges OF tenants and at
the same time receive all financial bene-
nus that ordinarily accrue TO the bene-
III OF the landlord. This can be achieved
oy buying en- apartment on the cooper
atiYe plan.
For the majority OF tenants the plan
ls entirely new and appears 70 be COM
plicated. but those who have had an OPP
portunity of making complete study of
the Idea and who have collectively taken
the same precautions In buying or
building as an experienced buyer or
builder always does. Will find that the
plan ts assured OF success from the
start.
Usually the plan is organized and car
ried through by some experienced real
estate manager, who will secure an op
tion to purchase a completed building
at fair price or who will secure an
option to purchase q suitable plot OF
ground and arrange a tentative contract
for the erection of the building and also
tentatively arrange for the financing.
II Is always essential that the mort
gage be for term Of at least ten years
and provide for reasonable annual or
semi-annuai payments In reduction OF
the principal beginning after the second
year. which would afford ample time to
organize the building and have II In ful
operation II Is most important thai
the tenant-ownera Immediately appoin-
a real estate expert to manage the
building for their account
To illustrate the various stages Of de-
tail and the safeguards which should
be taken In working out the coopera-
tive plan as applied to completed
building. Will tell about the Peter
Stuyvesant Apartment House." at 25S
Riverside Drive. southeast corner OF
Ninety-elghth street. the sale OF which
was effected on October last by Har-
ris. Vought & Co
How the Deal Was Organized
An option was secured to purchase the
land and building at price considerably
lower than present day cost suff1-
ciently large commission TO cover promo
ton. legal fees and advertising was al
lowed by the seller Tentative arrange
ments were then made with a life insur-
ance company for a ten year mortgage
for approximately so per cent OF the
purchase price The mortgage provided
for semi-annuaI payments In reduction
of the principal,
The building Is thirteen stories high,
fronting 100 feet on Riverside Drive and
1913 feet or Hlnety-eighth street II was
planned and erected for investment pur
poses by James T. Lee. one Of the fore
most builders In New York city The
structure Is an imposing one and Is con-
sidered one Of the best built apartments
Of this kind on the West Side Although
II was built thirteen years ago. the lay
out OF the apartments and features OF
construction are quite similar to the new
apartment houses that are being con-
structed to-day The building contains
fifty apartments Of six and seven rooms.
with large foyers and reception halls.
and Is in excellent physical condition,
having been maintained in high state
OF repair by the owner since II was
completed
A fair annual rental value was placed
on each of the fifty apartments for the
period beginning October l. 1920. Five
tim g the rental value was the basis frr
the sale price OF each apartment, which
sum was paid In cash by the tenant own
ers, and the amount realized from the
sale of eight apartments was used TO
purchase the equity In the land and
building after reserving a certain amount
TO be used as working capital by the ten
ant-nvner corporation. The difference
between the first mortgage and the cash
payment to the seller was taken care OF
by purchase money mortgage provid-
ing for approximately twenty equal semi
annual payments on account of the prin-
cipal.
Leading attorneys who are we'll versed
In the legal details concerning coopera-
tive ownership were retained as counsel
for the tenant-owners A corporation
was organized and as each apartment
was sold on agreement was entered into
between Harris. Vought & Co and the