For the first time since October 2022, elite New Yorker homebuyers opted for the co-op over the condominium, according to a new report.
For the week ending June 21, 12 luxury co-ops priced at $4 million-plus were sold in Manhattan, versus only 10 condos, marking the first week in almost four years when co-ops led. By far, the most popular location was the Upper East Side, with 10 of the sales.
The most expensive co-op sale was a 4,600-square-foot, four-bedroom penthouse with a 4,000-square-foot wrap terrace, at 150 East 73rd St. It closed at $14,250,000.
The shift to co-op over condo is a window into the mentality of the average high-end buyer in the Big Apple.
A buyer who opts for a co-op over a condo tends to want more bang for their buck, as co-ops are generally less expensive, both in terms of the property itself and closing costs ($30,000 versus $7,000, according to one local agent).
The average co-op list price was $6.4 million versus $7.6 million for condos for the week ending June 21, according to the latest Olshan Realty luxury report.
Co-op buyers also tend to be seeking a homestead rather than an investment, as co-ops often have strict rental policies, if renting is allowed at all.
Co-op buyers also prize character, generous room proportions, and solid construction over amenities like gyms and pools.
According to New York City luxury broker Frances Katzen of Douglas Elliman, co-op buyers want “one-of-a-kind details, such as dentil molding and cornices in moldings, that are from a bygone era.”
How co-ops differ from condos
Co-ops (cooperatives) and condos (condominiums) differ in key ways.
A co-op owner becomes a shareholder in a limited liability company and is essentially subject to a lease. Condos act more like single-family homes: The buyer owns the bricks and mortar of their individual unit.
Both properties normally have boards; however, co-ops tend to be much more restrictive about not only who can buy in, but what you can do with your home once you purchase its shares.
New York City co-op boards are notoriously hard-nosed, even rejecting the rich and famous.
In February, “Friends” alum Jennifer Aniston was seen leaving a Park Avenue 1925 co-op with her boyfriend, Jim Curtis. It’s unclear if the high-profile couple were apartment hunting, but if they were, even they wouldn’t be a shoo-in.
Additionally, co-op housing stock tends to be older. The city’s first co-op, The Rembrandt at 152 West 57th St., was built in 1881.
Co-op development exploded after World War I. But by the early 2000s, a residential development boom happened, and developers were building condos, not co-ops.
Today, while some existing structures might undergo a conversion into a co-op, it would be rare for a developer to build one. (The newer co-ops tend to be city projects.)
Therefore, co-ops are a time capsule—erected at a time when high-quality craftsmanship was standard, rooms were largely proportioned, ceilings were high, floors were hardwood, and walls were thick plaster.
“Co-ops typically reside in hard-to-replicate locations and buildings,” says Katzen. “They provide a level of size and scale that doesn’t make sense in today’s development world.
“The inherent value of a co-op is that it can’t be replicated—they’re situated on places like Central Park West or Fifth Avenue, a finite strip. They’re a rarity, not something you can build again.”
And while co-ops are generally cheaper than condos, value isn’t necessarily top of mind for a co-op buyer.
“They want prewar,” the broker says of the average co-op dweller. “They want quality, not cookie-cutter.”
Prewars—built between 1900 and the beginning of World War II—are usually co-ops, not condos. The rare prewar condo is normally cost-prohibitive, says the broker.
The appeal of the prewar co-op
Prewar apartments have become popular enough to command a premium, and it’s easy to see their enduring appeal.
Ceilings are typically 8 to 10 feet high, and charming period details include arched doorways, ceiling medallions, and crown moldings. Rooms tend to be spacious and, unlike today’s popular open concept, are usually defined behind walls and doors.
The average co-op buyer prizes these features over amenities such as a fitness center or a dog washing station—though some high-end co-ops have upgraded with such perks.
But the best prewar trophy co-ops come with a cachet that can’t be replicated. Take one of Katzen’s listings, a $5 million five-bedroom duplex in a 1927 prewar at 450 East 52nd, a building that doesn’t have a gym or Pilates studio.
But it does have working fireplaces, sweeping East River views, and that mainstay of prewar building life: a full-time door attendant. It also has a Hollywood pedigree: Legendary film star Greta Garbo used to live in the building.
Co-op buyers also tend to be in for the long haul. Due to co-ops’ generally strict rental policies, these units aren’t good investments.
The typical co-op resident has put down long-term roots, which means the tough boards may be welcome. Your neighbor isn’t likely to be renting out their unit on Airbnb.
“Taking the time to vet your neighbors means that everybody is assured of the same protocol, which means everyone is invested with the same commitment to ensuring that the building holds its value, and is run with the same integrity by all shareholders,” says Katzen.
“Co-ops tend to be stringent. But with that comes assurance.”
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