Stuy Town settlement could bring rent hikes for some tenants

TRD New York /
Nov.November 30, 2012 04:00 PM

Yesterday’s Stuyvesant Town deal could come with a bit of a surprise. The agreement, which brought an end to litigation over rent decontrol at the Stuyvesant Town-Peter Cooper Village apartment complex, and was worth about $147 million for tenants, could actually increase rents substantially for some residents, Crain’s reported.

CWCapital, the special servicer that controls the two trusts that own Stuy Town, told Crain’s that about 1,800 units of the 11,000 total now have two rent options. First, there’s a market rate rent; second, a rent derived from how many times the unit was vacated and the increases that it now has due under city regulations. Roughly 720 of the units will go back to market rate, which has the potential of adding hundreds of dollars of rent to the units each month, Crain’s said.

Andrew MacArthur, managing director of CWCapital, told Crain’s that “there will be a universe of people whose rents don’t go up at all, then there’s some that probably get a small bump, then there are others who get some amount more than that.” Specific figures were not available.

“I am concerned about people who had an expectation that their rent had settled at a certain place and may be wholly unprepared for the increases this agreement allows,” City Council Member Dan Gardonick, who lives in Stuy Town, told Crain’s. [Crain’s]Zachary Kussin


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

New NYC rent law “beginning to shut down investment”
Calamity and Kabbage: Accountants riff on PPP madness

Calamity and Kabbage: Accountants riff on PPP madness

Calamity and Kabbage: Accountants riff on PPP madness
City Council member Keith Powers (Getty)

Pol, biz groups: Suspend rent tax, extend outdoor dining

Pol, biz groups: Suspend rent tax, extend outdoor dining
Joseph Strasburg (Photo by Jeffersons Siegel)

Landlord leader opens up on rent law

Landlord leader opens up on rent law
Adam Pincus

Inside the legal strategy to topple New York’s rent law

Inside the legal strategy to topple New York’s rent law
A year after the rent law upended the New York City rental market, tenant organizers face an uphill battle to cancel rent and keep the pressure on (iStock)

Scant progress for tenants in wake of rent-law win

Scant progress for tenants in wake of rent-law win
arrow_forward_ios

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

Loading...