Seward Park Co-op Faces Dire Financial Reality

Posted on: July 27th, 2021 at 5:05 am by

The financial standing at the Seward Park Co-op is apparently dire. Thursday afternoon, the board distributed a report outlining various updates. It speaks for itself.

Of particular note is the so-called “Capital Update,” in which the board details the deterioration of “brick ties” on facades throughout the housing complex. To remediate the issue is a costly option called Helifix pinning, which, while expensive, is reportedly the most cost effective of the options investigated.

It is not a small or inexpensive project. The bricks must be tied back to the substrate throughout the substantial square footage of the buildings’ facades. This necessary work was not known, let alone contemplated, at the time of the co-op’s mortgage refinance. If you recall, the co-op borrowed $60 million in a swap agreement with TD Bank and BONY Mellon in 2019. An initial $40 million was paid upon closing; $20.5 million of that was used to pay off our balances on our former first mortgage and lines of credit. The remaining funds have already been spent and/or earmarked for the FISP Cycle 8 repairs and Cycle 9 inspections, the rebar remediation for the 18th floor terraces, and the 19th and 20th floor balcony load lightening (approximately $17.5 million together); the steam line and cold water conduit replacements underneath Pitt and Clinton Streets (approximately $4 million); and the elevator door lock monitoring code compliance and eventual modernization to comply with upcoming codes, which is projected to cost between $13 million and $17 million.

Just these in-progress or completed projects eat up the entire mortgage sum. That does not account for any lobby improvements, gym refurbishment, amenity additions, grounds redesign, garbage overhaul, roof project, bike storage, green energy solutions, or any other projects the board has been contemplating—and shareholders have been requesting—over the years.

Meanwhile, the tower rising at 232 East Broadway, on its backside, is a daily reminder of the failed co-op vote to sell $54 million of unused air rights to help replenish the proverbial coffers.

Full letter to members is below:

Seward Park Co-op Boardroom Report by BoweryBoogie on Scribd

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