The Co-Op Advantage
BY GAVIN MANLEY
With their old-world character, architectural provenance, and desirable location, there’s a lot to love about co-ops on the Upper East Side says Richard Ferrari, Douglas Elliman’s President and CEO of New York and the Northeastern region. Vicinity Magazine sat down with him to discover what makes co-ops so appealing in today’s market.
Co-ops on the Upper East Side have long been associated with elegance and grandeur. Is this still true today?
Absolutely! Many of today’s co-op buildings were designed and built during an era of growth and transformation in the early part of the 20th century. This was a period when business magnates and political power players were shaping the built environment of New York City. The dominant architectural style of the time — an American interpretation of Beaux Arts classicism — called for an unmistakable expression of refined grandeur. Decorative elements such as ornamental pediments, elegant balustrades, and lavish interiors featured prominently.
Beyond their architectural significance, many co-op buildings have the added intrigue of a veritable ‘who’s who’ of famous past residents. Captains of industry, celebrated philanthropists, and members of Hollywood royalty have graced the halls of New York’s best-known co-op buildings. Today, the co-ops along 5th, Park, and even further east offer buyers a fabulous opportunity to own a piece of New York’s illustrious past.
What are some of your favorite co-op buildings?
For me, one of the finest co-ops on the Upper East Side is 960 Fifth Avenue. Designed by Rosario Candela at the height of his career in New York’s booming 1920s, the apartments in this building are known for their grand proportions and exquisite architectural details. Today, this building boasts a private dining room and many of the homes have extra high ceilings and cozy fireplaces.
Another gem is 834 Fifth Avenue. Located on 64th Street, this building is remarkable for its limestone-clad façade, art deco details, and sprawling apartments boasting breathtaking views of Central Park.
And yet, perhaps my favorite co-op on the UES is 820 Fifth Avenue — a 12-story limestone building that was designed by American architectural firm, Starrett & van Vleck. With its expansive layouts — some in the 7,000 sq foot range — the apartments here number among some of the most elegant pre-wars that were ever built. Past residents at 820 Fifth Avenue have included Governor Alfred Smith, Lily Safra, and Babe and William Paley — adding to the provenance of this most prestigious address.
What upside do co-ops offer potential buyers today?
Co-ops, per square footage tend to be better priced overall, and some don’t allow rental tenants which often means a better quality of life for owner- occupiers. What’s more, co-ops typically require additional funds for capital assessments so when you live in a co-op, you have the security of neighbors supporting each other financially. The requirements around financing for co-ops have relaxed too in recent years. Where in the past 75% was required, now 50% is more commonplace. And significantly, many co-ops are now allowing a qualified buyer to be an LLC or trust.
What value does Douglas Elliman bring to someone who is considering the co-op route?
Many of our agents come with decades of experience helping clients to find and purchase their very own co-op apartment. Several agents have even been through the process themselves and bring invaluable, first-hand knowledge of what it takes to secure a successful outcome for all parties.
Originally published in the Spring 2023 Issue
of VICINITY Magazine.