Stuyvesant Town ruling post-mortem report examines which properties are in danger
December 02, 2009 09:20AM
The Ansonia, one of the properties Deutsche Bank says could be affected by the October Stuyvesant Town ruling
New York City multi-family landlords who took advantage of the same J-51 tax abatement program that got Stuyvesant Town into legal trouble are facing legal battles of their own, according to a Deutsche Bank report released this week. The report, a culmination of an analysis of hundreds of these tax break recipients whose loans are secured by commercial mortgage-backed securities, said landlords of properties like the tony Belnord and the Ansonia on the Upper West Side, as well as the Meyberry House on the Upper East Side, would have to make due with decreased operating income as a result of the October Stuyvesant Town ruling, which stipulated that rents cannot be destabilized while J-51 is being utilized. "In the longer term, owners may face decreased investor demand for rent-stabilized properties since the growth rate of cash flow is now severely limited," the report said. Many rent-stabilized buildings will not be able to increase tenants' monthly payments until 2017, according to the report. The Belnord, which has a loan balance of $375 million, topped Deutsche Bank's list of largest CMBS loans on properties affected by the ruling. [WSJ]
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance or advertisements. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments
Anonymous
is there anyway to find out if the building you currently live in was ever a part of the J-51 tax abatement program?
Comment #1 Posted By: Anonymous 12/02/09
Anonymous
webapps.nyc.gov:8084/cics/cwba/dfhwbtta/abhq
Comment #2 Posted By: Anonymous 12/02/09
Anonymous
greedy landlords are going down
Comment #3 Posted By: Anonymous 12/02/09
Anonymous
London Terrace Gardens in Chelsea....J-51 went into affect around June 1st, 2003....contact a Lawyer if you feel you were destabilized wrongly, after this period. Search on-line for the Lawyer who is handling a current group of tenants from London Terrace...
Comment #4 Posted By: Anonymous 12/02/09
Anonymous
So many tenants run out of sty town glad that there is justice for them...
Comment #5 Posted By: Anonymous 12/02/09
Anonymous
The Ansonia ? that building is probably 90% converted by now
Comment #6 Posted By: Anonymous 12/02/09
Anonymous
Anyone who is living in an ICON Realty buiding should contact to find out if their apartments should be retnt stabilized for they bought a number of those buildings for 175 million in 2007, hoping to kick out rent stabilized tenants and then jack up the rents. Now they don't even pick up their phones.
Comment #7 Posted By: Anonymous 12/02/09
Anonymous
check out London Terrace! They did the same thing!.
Comment #8 Posted By: Anonymous 12/02/09
Anonymous
check out anything owned by Laurence Gluck of Stellar Management.
Comment #9 Posted By: Anonymous 12/02/09
Anonymous
A class action lawsuit has already been filed on behalf of the residents of London Terrace. If you are a market rate tenant in LTG, you are already covered by the existing lawsuit. You don't have to do anything right now.
Comment #10 Posted By: Anonymous 12/11/09
Anonymous
The more the wealthy are attacked in this country, the less likely- hood there is of the USA being a world power. We now have Germany, Japan, China and India as the new world leaders where capital investment is welcome. The American Dream has become the American nightmare. Lawyers only care about their legal fees and could care less about tenants or anyone else they defend.
Comment #11 Posted By: Anonymous 12/21/09
Anonymous
what about de-regulated apartments in coops - where the sponsors are now renting out the apts at market rate (and the coop has been getting J-51 all along)?
Comment #12 Posted By: Anonymous 01/30/10
Anonymous
who pays the rent overcharges when the landlord goes bankrupt, or hands over the property to lenders (such as Stuyvesant, Peter Cooper). does the claim remain against the old owner who pocketed the money, or the new owners.
Comment #13 Posted By: Anonymous 02/01/10