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LEASES

One morning last week, I dropped into the West Broadway law office of Robert Projansky, Soho's resident counselor, to take a crash course in the legal aspects of buying and renting loft space. Projansky, whose clients, he says, are mostly artists, has long experience with the many legal hassles involved in converting commercial space into living or work-studio space. Projansky relaxed behind his tasteful wooden desk and offered the following advice to prospective loft dwellers:

Renting a Loft

Nothing a landlord tells you means a thing unless it is in writing. If he won't put it in writing, it's a pretty good bet he won't come across with it, whether you're talking about renovations or elevator service.

Keep in mind that the landlord is trying to sell you something; if he's being particularly nice to you, it is probably because it is the only time he will have any need to do so.

Fixtures such as plumbing and electrical work are part of the building and will ultimately belong to the landlord. Period. Keep that in mind when you put them in or pay a "fixture fee" to buy someone else's lease. A "fixture fee," in reality, is the time left on the lease you are buying, a self-depleting resource. Be sure that when you pay for fixtures, you are willing to expend that money for something you may never be able to sell. 

Make sure that someone selling ("assigning") you the remaining portion of his lease. Make sure that your lease suits your needs, accurately reflects your agreement with your landlord and protects you against his "landlordly" propensities. 

Try to get as much time on your lease as possible. Remember, unless you have an option to renew a loft lease, the landlord never obligated to give you a new lease upon the expiration of the original term. 
Examine carefully the real monthly costs involved in the lease agreement. Divide the fixture fee by the number of months in your lease. Are you willing to pay that much per month, knowing you may never recoup your fixture costs or "fixture fees"? Is the cost of heat included? Will there be rent escalations (fixed, regular increases) for tax increases, inflation, increases in fuel costs, etc.?

Buying a Co-op

Under New York State law, a co-oper must file with the Attorney General's office a prospectus stating all the material facts of his offering. Such documents usually run to 150 or more typewritten pages. The really important info is there, but it is usually buried amidst pages of useless data that the Attorney General insists upon. Read it. Then get a lawyer to read it. Be very sure you understand it. 

As with renting, be sure to find out the real costs involved. Understand the financial features of the agreement. How soon must mortgages be refinanced? Be sure you know what you're getting for your money. Co-op offerings vary a great deal in terms of what the seller is actually selling.

Check to see if the seller will obtain a certificate of occupancy as a residential building. Is the building zoned for residential occupancy or will you need a variance? If a variance is necessary, who is going to pay the $20,000 it is apt to cost? Look to see who your fellow co-operators are: You and they are going to manage a piece of property costing hundreds of thousands of dollars, a share of them yours. Be sure cooperation is possible.

You still have some questions, righ? Then take Bob Projansky's best advice: see a lawyer before you sign anything.
-Gerald Marzorati

Rents

Five years ago, the customer consulting a realtor whose chief holdings were loft space might well be a light manufacturer, a maker of hats, purses or small gadgets. Today, that customer will, more often than not, produce dances, paintings or sculptures and plan to live in the space, too. Such is the case for Harvey Drucker, whose realty firm, Loftspace, lists lofts of all shapes and sizes from 24th street to Battery Park.

Asked to hazard an outline of what to expect in the way of prices for lofts around the city, Drucker made the following points: "Soho is nearly completely developed, with most lofts there either co-ops - Soho is heavily co-oped - or on a third or fourth generation of tenant. Tribeca and Chelsea, west of Sixth Avenue from 23rd to 30th Streets, are the best bets. Brooklyn is opening up."

Ballpark Figures

Rental prices per square foot range roughly from $2.30/square foot (Chelsea) to $3.00/square foot (Soho). 

The cheapest loft is the smallest one available (say, just under 1000 sq. ft.) with the plumbing. Getting a small space without a toilet hook up is never a bargain.

The larger the space, the less the price per square foot. Keep this in mind. You may be able to save money by sharing a large loft rather than renting two smaller ones. 

Here is a rough guide for rough space in Manhattan: 1000 square feet, $325/month; 1500 square feet, $400/month; 2000 square feet, $500/month; 5000 square feet, 700/month.
Drucker was not willing to suggest a price range for co-op buildings. Both purchase and maintenance costs vary too much, he claimed, for any accurate guess. Among the variables, though, are the age and - especially - the condition of the building, its size and location, the terms of its mortgage and the competence with which it is managed. 

Remember that one of the figures above include fixture fees. Most loft dwellers invest time, energy, and money in their spaces and expect some return.

-Gerald Marzorati

RENTS
Five years ago, the customer consulting a realtor whose chief holdings were loft space might as well be a light manufacturer, a maker of hats, purses or small gadgets. Today, that customer will, more often than not, produce dances, paintings or sculptures and plan to live in the space, too. Such is the case for Harvey Drucker, whose realty firm, Loftspace, lists lofts of all shapes and sizes from 34th Street to Battery Park.

Asked to hazard an outline of what to expect in the way of prices for lofts around the city, Drucker made the following points: "Soho is nearly completely de-veloped, with most lofts there either co-ops - Soho is heavily co-oped - or on a third or fourth generation of tenant. Tribeca Chelsea, west of Sixth Avenue from 23rd to 30th Streets, are the best bets. Brooklyn is opening up."

Ballpark Figures
Rental prices per square foot range roughly from $2.30/square foot (Chelsea) to $3.00/square foot (Soho).

The cheapest loft is the smallest one available (say, just under 1000 sq. ft.) with the plumbing. Getting a small space without a toilet hook up is never a bargain.

The larger the space, the less the price per square foot. Keep this in mind. You may be able to save money by sharing a large loft rather then renting two smaller ones.

Here is a rough guide for rough space in Manhattan: 1000 square feet, $325/month; 1500 square feet, $400/month; 2000 square feet. $500/month; 5000 square feet, $700/month.

Drucker was not willing to suggest a price range for co-op buildings. Both purchase and maintenance costs vary too much, he claimed, for any accurate guess. Among the variables, though, are the age and - especially - the condition of the building, its mortgage and the competence with which it is managed.

Remember that none of the figures above include fixture fees. Most loft dwellers invest time, energy and money in their spaces and expect some return.

-Gerald Marzorati

Coop kits are available at the At-torney General's office, Room 4860, 2 World Trade Center, or by calling 488-3310.

Landmarks Preservation
Soho has been designated the Soho Cast-Iron Historic District by the commission. Exterior changes to all buildings in a landmarks district must be approved by the Landmarks Preservation Commission. The commission suggest the owner of a build-ing consult the agency early in the game, possibly before hiring an architect. The com-mission can suggest an architect if the owner has trouble finding one, and also maintains a list of masonry workers, ironworkers, carpenters and some plumbers and other craftsmen who have recommended by others who have used their services.

A public hearing must be held for structural changes and other major changes, includ-ing storefront renovations and signs. Hearings are held once a month with notification to the appropriate community board.

In the landmarks Area, the Buildings Department requires the commission's approval before granting a Certificate of Occupancy.

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Work Space
There was a time when the only performer living and working in the same place was the President. Now, it's not at all uncommon for dancers, musicians and performing artists in any number of mediums to dress in the morning and walk to work - in the adjacent room.

"I've done it for years," says Elaine Summers, a dancer/choreographer whose Broadway loft contains a 1200 square foot multi-media performance space off of the kitchen  area. "It's the only way that dancers can become wise to the economic situa-tion. It saves me money on all kinds of things, from carfare to winter clothing."

Elaine moved into her present home three years ago, and began molding the raw 5th floor space to her present home three years ago, and began molding the raw 5th floor space to her liking. The front of the loft, a small corner cluttered with stacks of books and papers, serves as Elaine's office. Also in the front is a dressing room for the dancers - the work space is often used for performances open to the public. The work space, with a beautiful hardwood dance floor, theatrical lighting and two balconies for video, takes up most of the loft. 

To the rear of the dance space is a dark room and a small space for editing film. Most of the works presented in Elaine's loft are multi-inter-media pieces; therefore the balconies and work rooms.

"Actually, the living space isn't much more than what you'd have in a small apartment," Elaine pointed out, but it is not without its interesting points. The kitchen is quite spacious, with plenty of cabinets and a window above the sink looking southwest over Soho. Best of all is the unique cast-iron atrium which lights up the kitchen and allows Elaine to get in some window-sill gardening.

"See that scraggly plant over there," she says, pointing to a stringy yellowed growth on her ledge. "A few weeks ago, I got the best cherry tomatoes from that plant."

-Gerald Marzorati

The Soho Weekly News September 8, 1977 15