The New York herald., 1922-09-24
SAVING TO TENANT
OWNER 90 TO 81
PER CENT. in YEAR
Poor Managing and Trying
for Too Much Is Danger
to Scheme. :
PUBLIC GRASPING IDEA
Property Must Be Well Situ-
ated and in Strong Fl
nancial Position. /
PUBLIC GRASPING IDEA
r HE cooperative apartment house

IT HE cooperative apartment house
plan is not generally UNDER
stood by the public. according
to Douglas l.. Gilman OF Douglas L.
Gilman & Co., Inc, realtors, Is East
Forty-ninth street.
Cooperative apartment house own
ersirip," said Mr.. Gilman yesterday to
a reporter for THE New YORK HERALD,
is tenant ownership. 1t does not
mean that you buy an apartment
simply but that you actually invest
with others in real estate. The in
ducement lies in the saving in rental :
The only danger is in trying to get too
much out of the investment and in t1-
proper management. AS an example. q
man buys cooperative apartment,
say, for $4,000. Assuming that he had
invested that amount at per cent,
which would be a fair supposition, his
interest would have been $500 a year
on that amount.
The upkeep of the apartment would
be about $1,000 year. Adding the $500
Interest would make a total of $1,000,
which he would charge to one account.
The theoretical rental value OF thc
apartment would be. according to tho
average of our experience. approximate
ly $4,000 year Consequently he
would save 80 to so per cent on his
rental. His profit would be the diff
ference between $1,000 and $4,000 or
s1,600. The price of the apartment has
nothing to do with the case because the
amount of the mortgage on the property
is the controlling factor.
We are managing 4s5 Park avenue,
the first 100 per cent. cooperative apart
ment on that thoroughfare and erected
by Dwight p. Robinson G Co. The stock
OF the company owing the property has
a par value of 100000 over a mortgage
OF s55o.ooo, and rs per cent. of il has
been sold. although the building will not
be completed until October 1.
Prominent Families Are Tenants.
Numbered among the buyers ara
Reeve Schley. vice-president OF the
Chase National Bank: G. w. Kress,
Emery II. Smith. Hamilton Fish Benja-
| min. Mrs. Clarence Wyckoff, BENJAMIN
| e. Tilt, Mrs. J. r. Little, Major Robert
| r. Hamilton. Robert Cresswell. w s. r.
Prentice. Mrs. c. II. Cothran. DR.. e. II
Faulkner. Charles 3, Barkley, DR.. w.
| @. Lough and ,. II. Ripley.
| mo. 290 Park avenue. also under our
management. Is a seventeen story par
| TALLY cooperative apartment house II
has been financed entirely through the
| sale OF s4.500,o00 in stock in the prop
erty We started selling the stock in
1870 At the same time we sold So
| OVo,oOO In stock in the block next to eco
| Park avenue We finished selling the
total of ss50o0o0 in stock in both
structures In the last few months, which
was a remarkable achievement in a
time when money was in great demand"
| There is large demand for coopers-
i tive aDaTtnpntS from he 81 80
which seeks permanent home in tho
city, said Louis RosenthaI OF SPOTS &.
starr. realty dealers Times Building.
me public said member of that
fIrnl is grasping the desira bility OF
cooperative apartment ownership To
interest the public the property has to
| be well situated. The appeal Ia IN
those who wish permanent homes N
the city. For that reason a location
that viii make such an appeal must bs
selected for the site. It must be In q
strictly residential section.
! Three Factors for Success.
The three factors that 60 into max
| Ing success OF a coopera tive apart
ment mouse project arc. first, the site
| must be well situated from the real
estate point OF view: second. all the
| apartments must be desirable ones ana
| there must be no rear apartments "a
| their owners will have 10 nav In fha
same proportion for their upkeep as
does the owner Of a corner apartment.
ana. third. the project must be well
| financed. The mortgages must be fair
ana not excessive. should lay stress
! on having savings bank mortgage.
| Every purchaser OF such an apart
ment pays his pro rata share of ths
/ upkecp. &c, Of the building. according
70 the number OF rooms which he Occur
pies, and It will fluctuate In accordance
\ with the budget for the carving
/ charges Of the property
/ our plan Is that a man NAV pr--
4 chase an equity IN an apartment and
pay his pro rata share OF the upkeep
Of the building Of which II is a unit
and that upkeep cost plus the interest
/ on his Investment. which he would have
mad had he invested I'm something else
i would be less than his reut would bo
Tor the same apartment were he not
\ It's cooperative owner In other words.
\ IN q certain number % wears he has
| something more TO show for his money
/ than bunch Of rcccipted rent bills.
BY the 100 per cent coopera tive
/ apartment ownership plan there ia a
4 tenant owner 70 every apartment IN
/ building. thereby eliminating outside
ownership and making 4 desirable in
vestment"