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

TRD 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
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

550 Madison Avenue (Credit: Google Maps)

Sony Building in talks with anchor tenant

New York City investment sales in September 2019

New York City investment sales in September 2019

Workers injured at Hudson Yards scaffolding collapse, a peek at Disney’s new HQ

Workers injured at Hudson Yards scaffolding collapse, a peek at Disney’s new HQ

E.L. Tower at 500 South Avenue (Credit: Google Maps, iStock)

Charges dropped against tenant leader

NAR approves pocket listings killer

NAR approves pocket listings killer

arrow_forward_ios