UDR Lower Manhattan Properties Fully Functional
Damage estimates from Hurricane Sandy, which roiled the Northeast a month ago, are still coming in. Multifamily specialist UDR has reported that it estimates that the storm caused total damages to the properties of between $28 million and $32 million.
By Dees Stribling, Contributing Editor
New York—Damage estimates from Hurricane Sandy, which roiled the Northeast a month ago, are still coming in. Multifamily specialist UDR Inc., which owns three properties in Lower Manhattan, has reported that it estimates that the storm caused total damages to the properties of between $28 million and $32 million.
Denver-based UDR’s Manhattan properties are 10 Hanover Square, 95 Wall and Rivergate. All of them were affected by the storm, which initially meant evacuation under New York Mayor Bloomberg’s mandatory evacuation orders.
The three properties were operational again with limited services before Thanksgiving. A UDR spokesman tells MHN that as of the end of November, full services and occupancy at the properties have been restored.
On Nov. 1, two days after the hurricane, the company issued a preliminary damage estimate of $11 million to $14 million, based on the expectation that primary building systems would be minimally affected and electricity and steam would return after a few days. Following inspections of building systems with representatives from the company’s insurance providers, as well as the completion of initial repairs, the estimate of the damage increased.
UDR carries insurance for flood damage and business interruptions, and its Sandy-related deductible will be about $1.5 million. While the company believes it will be reimbursed for costs and lost revenue, the timing and ultimate amount of recovery is still uncertain. As a result, the company expects to record a charge of 3 cents to 4 cents per share in the fourth quarter.
It’s a story that’s playing out in a lot of places. According to New York Gov. Andrew Cuomo, the state will need $32.8 billion for hurricane-related repairs; New Jersey Gov. Chris Christie puts damages in his state at $29.4 billion.