Co-op City, the Largest U.S. Residential Complex, Seeks New Management
Oct. 24, 2014 — The massive Co-op City residential complex in The Bronx has sent out requests for proposals to seek new property management.
The Mitchell-Lama co-op of 15,372 residential units in 25 high-rise buildings and seven clusters of townhouses is seeking to replace Marion Scott Real Estate, which has managed the complex since 1998, reports Real Estate Weekly. Firms can bid through Nov. 19 to manage all of Co-op City or either the residential or commercial portions, the magazine said.
Co-op City's physical plant includes two 13-megawatt and one 14-megawatt power generators, a jail, eight parking garages, 15 houses of worship, 12 schools, several day care centers, four basketball courts, five baseball diamonds and an adjacent shopping center with a 13-screen movie theater, department stores and a supermarket. It employs more than 1,000 employees represented by seven labor unions. The annual budget is $200 million.
There's a Reason They Call it "City"
"Assuming the management of Co-op City is a true property management challenge," Paul Gottsegen, president of Halstead Management and of the Greater New York Chapter of the Institute of Real Estate Management (IREM), told the magazine. "The management company must be able to provide a plethora of services way beyond the traditional management needs of a residential co-operative."
The co-op's attorney, Jeffrey Buss, a partner at Smith, Buss & Jacobs told REW that RiverBay has received requests for the full bid package from approximately 20 firms. The chosen firm must be approved not only by RiverBay but by the Federal Housing Administration, the New York State Division of Housing and Community Renewal, and Wells Fargo, which holds a $621.5 million mortgage on the property.
Co-op City shareholders in recent years have endured, among other travails, a lockout of workers, a four-hour power outage, a disability-accommodation lawsuit, and, early this year, a $5 million class-action lawsuit on behalf of present and former Co-op City workers alleging unpaid overtime. It has also seen $300 million in capital improvements in recent years.
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