East Village retailers face rising rents to protect low-income neighbors

New York /
Jul.July 19, 2012 03:00 PM

A bevy of East Village businesses are bearing the burden of increased rents for their neighbors in low-income housing. The Local reported that in order to fund $400,000 worth of upgrades to some of its 25 buildings in the East Village, the Cooper Square Mutual Housing Association is planning rent increases of about 30 percent for its commercial tenants.

“We tried as much as possible to use our reserve funds, instead of increasing the rents of the tenants through big increases that tenants cannot afford,” said Val Orselli, the executive director. “So either the cost has to be borne by residential tenants, who are very low-income, or the commercial tenants.”

The group’s real estate has not been renovated at all since 2005, and a recent survey of the properties found repairs were needed to several of the buildings.

The association said its residential tenants’ average income is just $12,000. Meanwhile, the rents paid by commercial tenants are still well below market rate, according to Tower Brokerage President Bob Perl, who is representing the landlord in rent negotiations.

But that hasn’t stopped the owner of La Sirena, a Mexican memorabilia store at 27 East Third Street, from complaining that the hikes will push her out of the neighborhood. Her rent will rise past $2,000 per month after previously being $1,600. [Local EV]


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Neumann reveals his vision for Flow renters to “feel ownership”
Neumann reveals his vision for Flow renters to “feel ownership”
Neumann reveals his vision for Flow renters to “feel ownership”
From left: Alvin Bragg and Eric Adams (Getty)
City sues East Village landlords over illegal smoke shops
City sues East Village landlords over illegal smoke shops
From left: Extell's Gary Barnett with 217 West 57th Street, Related's Jeff Blau with 450 Washington, 300 West 30th Street and Fortis' Jonathan Landau Olympia Dumbo
New condos cool in Brooklyn, but hold steady in Manhattan
New condos cool in Brooklyn, but hold steady in Manhattan
L&L Holding Company’s David Berkey and Polsinelli’s Gabriel Dabiri along with 600 Third Avenue (Getty, L&L Holding Company, Polsinelli)
L&L, BlackRock sign law firm to renewal, expansion at 600 Third Ave
L&L, BlackRock sign law firm to renewal, expansion at 600 Third Ave
From left: 418 State and 191 Lefferts Place (Getty, Google Maps)
Brooklyn luxury market ends January with a whimper
Brooklyn luxury market ends January with a whimper
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...