Stuy Towners flummoxed by rent increase clause

TRD New York /
Feb.February 07, 2013 08:30 AM

Thousands of residents in Stuyvesant Town and Peter Cooper Village are flummoxed by a lease clause that allows their landlords to hike their rent in the middle of their lease, the Wall Street Journal reported.

Roughly 40 percent of the 11,200-unit complex could see rents rise as much as $1,500 due to the clause, which was the result of a previous lawsuit tenants brought against a consortium of investors led by Tishman Speyer and Metlife, and against landlord CWCapital Asset Management. The residents argued MetLife and Tishman Speyer — which paid $5.4 billion for the complex in 2006 — improperly deregulated the rent-stabilized apartments while simultaneously taking J-51 tax benefits, as The Real Deal previously reported. The roughly $147 million settlement is expected to be finalized in April, at which time the complex’s owners could move to raise the rent.

Some tenants who signed the lease with this clause told the Journal that they didn’t notice the clause, or were assured by their agents that it would never be enforced. “The rent is very unlikely to be raised mid-lease, and would only come from a court order,” a leasing agent wrote to a tenant in an email reviewed by the Journal. “It is not something the landlord would choose to do.”

Local officials and tenant advocates have taken up the mantle for the tenants, pushing CWCapital to commit to leaving the rents at their current levels. In a letter addressed to the landlord, politicians including City Council Member and Stuyvesant Town resident Daniel Garodnick, U.S. Sen. Charles Schumer and City Council Speaker Christine Quinn said that they were “deeply skeptical of the legality of such a right, if exercised, and urge you not to take advantage of it.” [WSJ]  –Hiten Samtani


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
Stuyvesant Town (Getty)

Layoffs at Blackstone’s Stuy Town management firm

Layoffs at Blackstone’s Stuy Town management firm
From left: Tishman Speyer CEO Rob Speyer, Fiorello LaGuardia and Robert Moses. Inset: Hiten Samtani and Charles Bagli (Getty Images, Wikipedia Commons)

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York
From left: Rockefeller Group CEO with 1221 6th Avenue and Tishman Speyer CEO Rob Speyer with 630 Fifth Avenue (Credit: Google Maps; Rockefeller; Drew Angerer/Getty Images)

Big law firm lease falls through at Tishman Speyer’s 630 Fifth

Big law firm lease falls through at Tishman Speyer’s 630 Fifth
Blackstone's Jonathan Gray and an aerial of Stuyvesant Town (Credit: (Photo by Drew Angerer/Getty Images; iStock)

Stuy Town tenants sue Blackstone to stop rent hikes

Stuy Town tenants sue Blackstone to stop rent hikes
Linda Rosenthal and Stuyvesant Town-Peter Cooper Village  (Credit: Brett Carlsen/Getty Images; Orjan F. Ellingvag/Corbis via Getty Images)

Pol seeks to punish landlords with “warehousing fee” for vacancies

Pol seeks to punish landlords with “warehousing fee” for vacancies
The Wheeler at 181 Livingston Street with Tishman Speyer's Rob Speyer (Credit: The Wheeler, Getty Images)

For-profit Whittle School inks lease for Tishman Speyer’s The Wheeler

For-profit Whittle School inks lease for Tishman Speyer’s The Wheeler
The Spiral and Debevoise presiding partner Michael W. Blair (Credit: Tishman Speyer)

Debevoise signs big lease at Tishman Speyer’s Spiral

Debevoise signs big lease at Tishman Speyer’s Spiral
arrow_forward_ios

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

Loading...