JACKSON HEIGHTS — A large rental complex along 35th Avenue has accepted a plan to be converted into co-op, as some in the building fear the rising cost of apartments since the original plan was released could push them out.
Washington Plaza, a 190-unit complex with six wings between 73rd and 74th streets, voted for the plan after it was first presented in April 2014, records show. It was accepted for filing this February.
Tenants already living in the buildings are being offered a special "insider" price for 90 days after the plan's approved, at 10 percent less than the "outsider" price, officials said.
But some got sticker shock from the spike in what was presented in the original book. At a recent tenant meeting, many asked that the insider price be lowered, according to people who were in attendance.
A two-bedroom, one bathroom apartment originally offered in the book given to tenants for $402,161 is now listed at $562,275, documents show. And three-bedroom, two-bath apartment for $576,198 is now going for $830,790.
Some tenants — who asked not to be named — said they were "disappointed" by the change in price and felt tricked by what was presented in the original book.
Others were hopeful for successful sales.
Rafael Bellber, a Washington Plaza renter who handles mortgages for properties, said the switch to co-op could be a "tremendous opportunity" but it would need a high number of owner-occupied units to be successful.
"My hope is that the current tenants decide to purchase their units, as this can give us a healthy start to reaching that goal," he said.
"I believe if the tenants are satisfied with their insider price they would be motivated to proceed with their purchase."
Those working on the project said the revised prices are a reflection of the rising value of real estate costs in the neighborhood.
"The outsider prices went up, and the tenants have always been offered a 10 percent discount," said Mark Axinn, the lawyer handling the conversion.
"That price went up across the board. In the last two years, Jackson Heights has very much been in demand."
Marilyn Sollar, who is handling sales on the units, said they priced the apartments in the final "black book" in line with what apartments have been going for in the neighborhood.
"It's our obligation to understand market pricing," she said. "Jackson Heights has been really on fire. It's really a very hot neighborhood."
Renovations around the building, including inside 52 vacant apartments, also contributed to the spike, Sollar said.
"The renovations are exquisite," she said, noting brand-new kitchens, cabinets imported from Italy and stainless steel appliances inside the empty apartments.
The building hired a special craftsman to restore the original scalloped crown molding in bedrooms, and outfitted the units with modern lighting and bathroom fittings.
They are also redesigning the lobby and hallways and adding more foliage to the already prized interior garden, including adding more seating.
"At each and every turn...we opted for the better option," she said of the upgrades.
Sollar said they plan to officially launch sales on the apartments May 1.
For more information, visit the Washington Plaza website.
