362





RECORD AND   GUIDE.





September 13, 1902.





clerks in the office should enter on books, laid out possibly after
the block index plan, all leases, mortgages, sales, foreclosures,
etc., these affording the best and largest amount of real informa¬
tion obtainable, although fictitious transfers must of course be
guarded against.

With these two sources of information the higher officials
aided by their general knowledge and making use of scales of
proportionate values of different sections, and utilities, of vary¬
ing rates for capitalizing income, of relative cubic foot cost of
buildings, etc., such as their experience supplies, should deter¬
mine upon certain units of value of both land and buildings, the
work of figuring these out for each parcel being done by subor¬
dinates. The co-operation of a committee of outside experts in
real estate and building, as suggested in last week's Record and
Guide, might advantageously be enlisted, in the same way that
an executive committee of a bank co-operates with the bank's
officers.

Of course any plan depends for success on those carrying it
out. Such a plan as that outlined above, based on the funda¬
mental principles of division of labor, specialization in different
lines, and close study of tbe best sources of information, if car¬
ried out by skilled officials, aided by outside experts in land and
buildings, should unquestionably show better results than those
achieved at present.





The Outlook for Realty Investment.

IN writing about the real estate market during the past two
years, we have frequently made the statement that it was at
bottom a speculator's market. It has been the speculative cor¬
porations and operators who have been responsible for the high
prices, and great activity; it was they who have been erecting
most of the large buildings. Two important exceptions should,
indeed, be made to this statement. There has been a large de¬
mand for property of a certain class, not for investment, but for
use. The general prosperity has made it necessary for many
large business houses to buy or hire more office, factory or sales¬
room; and the consequence is that large blocks of real estate
have been bought, and taken permanently out of the market by
business men who needed it. Another demand, which has had
an important effect on values along the line of upper Fifth ave¬
nue is that on the part of rich men for the sites of expensive
dwellings. In both of these cases the purchase of property for
use was mixed in, also, with a considerable alloy of speculative
buying; but back of it all there was an insistent demand, by the
actual users of tbe property, which gave a tone to the whole
market

On the whole, however, this class of purchasers was excep¬
tional. It was speculative corporations, which caused the in¬
crease of values in the financial district. Although back of them
was the absolute necessity of more office rooms. It was specu¬
lators who have been buying tbe corners of lower Fifth avenue
for the purpose of erecting thereon eleven-story loft buildings.
It was a speculative demand chiefly, which has caused the activity
and the high prices near Greeley and Long Acre squares. Spec¬
ulative builders have been putting up many apartment hotels
and selling very few of them. They have been putting up many
expensive private residences south and east of the park and
selling very few of them. Builders and building loan operators,
also, have on their hands many unsold apartment houses on the
■West Side, while large tracts of land on Washington Heights
are being held for development by speculative syndicates. The
fact that so much real estate was in the hands of men, who were
simply waiting lor a profitable opportunity to re-sell introduced
an element of uncertainty in the market It was all right during
prosperous times; but should any trouble arise, much property
might be thrown on the market at forced sale and cause a sud-
de'u and disasti'ous slump in values.

The question is. whether a demand for investment may rea¬
sonably be anticipated during the coming year, which will take
any large proportion of this property out of the market. It is
too soon to answer this question with a decided affirmative; but
there are reasons to believe that certain classes of property at
least will be in better investment demand. In the first place,
general conditions are such that a good deal of money may pos¬
sibly be seeking its income in real estate. The prices of stocks
and bonds are relatively high, and have reached a point at which
the actual interest they pay is exceedingly low. And flnally it is a
rule, which has often been verified in the past, that it is toward
the end of a period of prosperitythat the accumulations of capital
seek investment in real estate. In the second plate, the specific
conditions are such as to favor such a demand aioag certain
lines. What an investor wants is. of course, sufficient income.
He differs from the speculator in not wishing to pay a big price
for a piece of property, the income-yielding power of which  is





only prospective. Among the classes of real estate mentioned
above, some are in a condition to yield a sufficient return, and
some are not. Business property in the flnancial district is now
returning for the most part an excellent rate of interest on the
capital invested; and the big realty corporations have recently
combined partly for the purpose of selling such buildings to the
public in the shape of stock certificates—a task which they will
probably successfully accomplish. The loft buildings, which are
being held for sale, should also find a certain market, for they
have been well rented. The same, however, can scarcely be said
of property in the vicinity of Greeley and Long Acre squares,
the values of which remain, at present, beyond their power of
producing any corresponding income; and this kind of real es¬
tate is likely to remain chiefly in the hands of speculators for
several years to come, until, that is, the Subway is in operation
and the Pennsylvania tunnel near completion. The value of
property on the side streets in these vicinities will depend in
great measure upon the rate at which the apartment hotels—
now the most important class of improvement—continue to be
rented. On the other hand, apartment houses on the West Side,
which of late years have been in bad odor, are now being so
well rented that they are being much more readily disposed of
than was formerly the case, for some half a dozen of them have
been purchased during the past two weeks. Residences on the
West Side, also, are being rented and sold at an unusually rapid
rate, which is not singular, considering that so few of them have
been erected of late years. In short the favorable renting con¬
ditions, which have been prevailing in the business districts have
spread to the residence districts, and will help to bring those
kinds of real property in better investment demand. This re¬
sult is not as yet assured; but brokers are coming to hope and
expect that such will be the case.





West End Section to Have a Magnificent Apartmstit
Hotel—Cost $750,000.

According to the specifications now nearing completion by the
architect, Harry Allan Jacobs, No. 1135 Broadway, the edifice
which is soon to be erected on the southwest corner of Broad¬
way and 103d st, will be by far the finest of its kind in that
part of the West End section. The site .^fronts 120 feet on
103d st, running back 100.11 feet on Broadway. The building
is to be of the modern fireproof type, nine stories, of brick,
stone and terra cotta; the roofing plastic slate or tile. The
cellar will be partly devoted to the power plants, which include
ventilation, electric, refrigerating, air-filtering, water-filtering
and steam. The first floor is to contain a palatial dining room,
40x100 feet, with a 19-foot ceiling, a palm garden, offices, par¬
lors, and three private dining rooms. The mezzanine floor con¬
tains private dining room,  nurses'  dining  room,  etc.

The plan of the second floor provides for a large dining room
for maids and children. The typical floor plan contains about
thirty-one rooms to a floor, with eighteen private and two pub¬
lic  bath   rooms.

The tenth floor is laid out for the servants, and contains three
public baths. The housekeeper and assistants also are to have
suites with baths on this floor.

The roof will be reinforced for use as a roof-garden. Two
electric passenger elevators, one electric freight elevator, sepa¬
rate telephone service to each apartment, a mail chute, mosaic,
tile, marble work, stucco work, architectural iron work, orna¬
mental glass, etc.. etc.. are specified. The plumbing bill will
be an enormous one. At a total cost of about $750,000 one can
judge of the class of structure it is to be. The projector is J.
A. ■ Pinchbeck,   No.   674  Columbus   av.





A   "Concrete System "   to be Used in a   High   Class
City Dweiiing.

The cement and concrete "systems" are slowly and surely
forcing their way into the foremost ranks of latter day building
methods. What the French and Germans have been experi¬
menting with and perfecting is now becoming a factor in our
building world, notwithstanding the cry of "It's all very well,
but our climate won't stand it," etc., which has been beard in
the past, when one mentioned the subject. The Hennebique
System, Armored Concrete Construction, a French method, has
been decided upon for the interior and roofing of the residence
of Prest. Sheldon, of the 1st National Bank, which is to be
erected at No. 38 E. 40th st, from plans by Ernest Flagg. The
building is to be six stories, of brick and stone; the dimensions
ore 26x100 ft. Entire cost to be about $45,000, while the cost
of the "system" work, which includes walls, floors, staircases,
ceilings, roof, partitions, etc., is but $6,000. The concrete work
will be 3 in,ches thick for the floors, IY2 inches for ceilings. It
is guaranteed sound proof, damp proof, absolutely flreproof, and
particularly superior to al! methods where tiling, mosaic work,
etc., is to be laid over. The system is to be used in Cleveland,
O., in the interior construction of The Salvation Army Building,
which is to be six stories, 50x135 ft.; total cost about $55,000.
Cost of system, $24,000.    At St Louis. Mo., The McKinley High