Stuyvesant Town ruling post-mortem report examines which properties are in danger

Dec.December 02, 2009 09:34 AM

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.

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