Is Madison Capital using sketchy tactics with stabilized Chinatown apartments?

TRD New York /
Aug.August 16, 2011 11:44 AM

Madison Capital, a real estate investment firm, bought two Chinatown tenement buildings for a total of  $20 million in 2008, and according to the New York Times, it is pushing out rent-stabilized tenants to ensure a faster return on its investments.

Though no lawsuit was filed, and no comment was obtained from Madison, the Times alleges that Madison Capital stopped fixing leaks, cut the heat and even accused tenants of soliciting prostitution at 55 and 61 Delancey Street in an effort to push existing tenants out, including the subject of the story, Zhi Quin Zheng, in order to convert the units to market-rate apartments.

The tenants of the 45 apartments are mostly Chinese and Dominican people that pay about $1,000 per month. Newer arrivals, the Times said, pay close to $3,000. The Times cited analysts that believe Madison needs at least $6,500 per apartment to turn a profit. Madison has offered buyouts of more than $20,000 to rent-stabilized tenants.

The columnist, noting the increased gentrification in “the last blue-collar neighborhood in southern Manhattan,” speculates that Madison will replace the old walk-ups with glassy condos. In the meantime, Zheng is fighting to protect her apartment. “It is battles all the time here; lots of people are leaving,” she said through an interpreter. “I know my rights, but I am nervous.” [NYT]


Related Articles

arrow_forward_ios
55-59 Chrystie Street and Rosewood Realty's Greg Corbin (Credit: Google Maps)

Chinatown mixed-use building heads to bankruptcy auction

130 Prince Street

Madison Capital buys Soho building for $206M

NYC’s multibillion-dollar enigma

NYC’s multibillion-dollar enigma

Tenants at Joseph Betesh’s 85 Bowery can move back in soon, spokesperson says

Tenants at Joseph Betesh’s 85 Bowery can move back in soon, spokesperson says

Here’s what Joseph Betesh is paying his tenants in settlement

Here’s what Joseph Betesh is paying his tenants in settlement

Why 75 tenants were removed from Joseph Betesh’s Chinatown building

Why 75 tenants were removed from
Joseph Betesh’s Chinatown building

An inside look at  New York’s Chinese real estate scene

An inside look at New York’s Chinese real estate scene

Madison Capital gets $51M Mesa West loan to buy Flatiron ground lease

Madison Capital gets $51M Mesa West loan to buy Flatiron ground lease

arrow_forward_ios
Loading...