On the eve of their deadline to declare themselves buyers or to continue as renters, residents of Island House have received a buy-out offer from the building’s owner.
One result is an extension of the cooperative buy-in deadline from March 31 to April 20, allowing an additional 20 days for those considering a purchase to make the necessary arrangements.
In the buy-out-move-out surrender-your-apartment offer, at $70 a share, tenants prepared to vacate their apartments would receive about $44,450 on a studio unit, with others going up to about $162,960 for a four-bedroom unit: one bedroom $66,500, two-bedroom $93,100, three-bedroom $140,140. (Exact figures depend on square footage.)
The deadline for signing and turning in a “surrender document” is given as April 30. Some residents report confusion over the changing terrain, which may make the 20-day extension welcome. Ideally, those who intend to buy must have their mortgage arrangements worked out in advance, because a provision in the offering plan specifies that their down payment will not be returned if they find they cannot complete the deal. Alternatively, there is a “loan contingency rider” available, which may provide protection for a down payment sum and insure its return under specific circumstances.
A third choice available to present tenants is to remain as tenants. The Island House plan provides for a shrinking flip tax over a seven-year period.