Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: [v. 98, no. 2520: Articles]: July 1, 1916

Text version:

REAL ESTATE AND NEW YORK, JULY 1, 1916 REMODELING OLD LAW TENEMENT HOUSES How an Owner Can Alter Old Structures and Obtain Increased Rental Returns on Investment By WILLIAM H. ABBOTT First Deputy Commissioner, Tenement House Dept. np HE greatest problem in ■*• the real estate market in tlie city today is "What can property owners do to obtain a fair and honest return on their invest¬ ments?" There are many causes which have contributed to the depreciation of real estate, over some of which the owner has had no con¬ trol, while other cases are directly traceable to poor management. The inflated prices ob¬ tained in the boom era, of a few years ago, are con¬ tributing much of the em¬ barrassment of the present owners' difficulties. In many cases there is no method of adjusting this condition; in others, time alone may oflfer partial relief. Many kinds of buildings have, in the last decade, shown reduction in rentals. This article will deal only with the mul¬ tiple dwelling. The great number of individual in¬ vestors affected in this class of build- ■ 'Htetbre ■ l\iter»1'ion'" FIG. B.—ROOF GARDEN TREATME.NT. ings undoubtedly warrants serious con¬ sideration of the conditions, and a prac¬ tical solution of the situation must be found to enable the owner to obtain a better income return. Why are there any vacant apartments? Why are whole houses empty? It seems to me the an¬ swer may be found in the following: Tlie people today demand something more than their parents wanted a few years ago. Smaller and up-to-date living units are demanded. This is brought about by three im¬ portant agencies: First, the smaller families; second, the need for economy, and third, the change of residential neighborhoods. The old law tenements, especially the type erected before the dumb-bell mul¬ tiple dwellings, where apartments ran through from street to yard, six, seven and eight rooms deep, were the prevail¬ ing arrangement of the home unit. Tliese apartments contained all the ordi¬ nary conveniences and accommodations that were looked for in the age of their popularity. Today, however, the limited number of families who could afford to occupy these, require all the latest im¬ provements and luxuries, such as eleva¬ tors, telephones, all light rooms, private incinerators, laundries and hot air dry¬ ers, electric light, ice boxes connected with a refrigerator plant in the cellars, hot water, steam heat and one or more hall boys. But these can only be found in the new law multiple dwelling. It is therefore easily seen, that the old law tenement is an undesirable piece of prop¬ erty to own; in fact, even a drug on the market. The march of progress in all ages has left by the wayside the weak and unde¬ sirable, and in a short time the flourish- in.g village, town, factory site, and even the mountain side, or the river course is changed to suit the new ideas and demands of the current times. What is the owner of the old law tenement to do with his burden, fre¬ quently containing his life's savings, or representing years of work. This is the .greatest problem that has to be solved by the real estate interests in New York City today. There are practically only two ways of remedying the situation, so that the improvements made will meet the re¬ quirements of the purchaser and renter, for a reasonable time, and at the same time give a fair return on the investment. The building must be re¬ modeled in a- way that will approach the improvements and conveniences of the new law building so far as possible, or the structure must be torn down and a new law multiple dwelling erected in its stead. The first suggestion, al¬ though considerably less costly, is surrounded by many difficulties. The Tene¬ ment House Law requires that any alterations made in a tenement (new or old building) must conform to all the requirements of tenements hereafter erected; even in the case of change of occupancy, an additional family must have the same benefits as would be required in a tene¬ ment erected today. Frequently, a more desirable alteration can be made by connecting two tene¬ ments into one, so that the space re¬ quired for light shafts, courts, stairs, ^.[c.A ■ 3f SLj?! liSiftil25i."