NEW YORK–Two auctions of taxicab medallions here in the next 10 days–including a sale by NCUA–will offer updated insights into how the market is valuing the medallions that were selling for more than one-million dollars each just a few years ago.
In the first auction, 139 taxi medallions once owned by Evgeny "Gene" Freidman, who was once known as New York's "Taxi King" but who has more recently been in the news due to his association with President Donald Trump's lawyer, Michael Cohen—will be put up for sale at the Sheraton LaGuardia East in Queens, N.Y.
Crain’s New York reported one potential buyer had told the publication he plans to bid $140,000 apiece for all 139, which would mark a steep drop from recent prices. Forty-six onetime Freidman medallions went for $186,000 each at an auction in September, Crain’s noted. As recently as four years ago, prior to Uber and other ride-sharing services gaining traction, a taxi medallion had sold for $1.3 million.
Crain’s noted that the medallions have recently attracted the attention of Greenwich, Conn.–based hedge fund MGPE, which bought the group of 46 medallions late 2017 that it, in turn, is renting to drivers for approximately $1,200 per month.
As CUToday.info and Crain’s New York recently reported, Bay Ridge FCU in March took possession of 15 medallions following an auction with a $200,000 minimum bid that drew no takers. It is now offering them to owner-drivers for about $275,000, with 4% financing, Crain’s said.
The monthly payments on the loan would come to around $1,500, said Bay Ridge CEO Anthony Grigos. Grigos told Crain’s New York that is a “manageable number, given the average gross revenue of $85,000 a year for the owner-drivers in the lender's portfolio.”
To date, BRFCU has received eight offers it considered serious, of which four were deemed acceptable risks.
On June 11 NCUA will be auctioning four medallions it owns after taking control of First Jersey Credit Union.