New-York tribune., 1921-11-20
Steel Legs Under
Park Avenue Flat
Figure in Deal
Worth $45O,OOO, Connecti-
cut Resident Buys Them
for Less; Will Bring Him
100000 Year Until 1927


site of the 290 Park Avenue apartment,
one of the newest and finest co-opera-
tive structures in New York, was an
interesting deal. 1t reflects the i'm
genuity of the brokers, high regard
by the buyer for property values in
New York, and should develop neglected
prospects of a similar nature.
What was assigned or sold was the
steel structure on which the seventeen
story building stands. The people who
live in the house, about thirty families
all told, own the structure from the
ground floor up, and own it outright.
But from the street down now belongs
to man who lives in Connecticut 1t
will be his for the next FIVE years, at
the end of which time he will pass it
over to the New York Central Railroad
officials. During the five years the
man who lives in Connecticut will be
paid indirectly about $45O,OOO by the
owners Of the house for the privilege
OF that location. The New York Cen
ffF"' tNo "ctual owner of the fee of the.
LIND, which is about sixty feet below
the bottom OF the building, will not
receive one penny income on the prop-
ertv until 1927.
This curious situation was developed
by the United States Railway Commits
sion. The government was in control
of the New York Central when the
property was leased. The officials of the
Central did not expect any opposition
to the company doing for the thirty
members of the 300 Park Avenue Co.
operation Company what it had done
Tor other apartment dwellings in the
section, and that was to build series
OF massive steel legs on which to nut
their house. The legs were to be built
up from between the railroad tracks.
some fifty or sixty feet below, to the
street level. When it came to carving
out their part Of the agreement the
Central officials were baked by the
government board.
Fred T. Ley. whose company had the
contract to build the structure for the
cooperative tenants, then proposed
that he would pay for the construction
of the steel legs if the money expended
would go as rent. This was satisfac-
tory to the railroad company and the
foundations were erected. The cost
represented about five years. rent,
which was assigned to Mr.. Ley by the
New York Central.
of Butler & Baldwin, was discussing
real estate matter with Mr.. Ley, when
the builder told him of the interesting
situation at 200 Park Avenue, and ex-
pressed the desire Of selling his five
year leasehold at an attractive price for
investment.
Mr.. Baldwin started Immediately to
find some one who would buy the
leasehold, but he met with little sue
cess.
II never found it so hard to interest
people in anything before in my years
in real estate" Mr.. Baldwin said yes
for Aoxy = -
see the Value of the leasehold, The
fact that they were taking space under
building perched, so to speak, on legs
did not seem tangible, did not seem to
mean anything to them, though the
value of the. space and steel work be-
tween was backed by the securities
of the New York Central Railroad and
the seventeen story structure owned
by some of the wealthiest people in
the country. 49,
ITO me it was a wonderful .oppor-
tunity. l was sure that some one
would appreciate the investment. It
was condition. particularly of this
property, and being an. entirely new
situation people discredited the value
Of the offer. told my story to Francis
B. Roberts one day. Very interesting
was his remark. 4 have man who /
thing will be interested in that. Give
me day or two and I'll tell you one
way or the other His man was in
terested and the deal. was closed.n
He has paid all cash for the steel
|,nnderwork. With the money the New
|sYork Central will receive from the
apartment house owners the company
will buy. the foundations. The com
pany will own 1t outright ON the pay
ment OF the fifth installment, which
Will bring its investment in the steel
work up to $450,000.