There’s a new kind of broker in town.
Middlemen companies are emerging to broker buyout deals between landlords and rent-stabilized tenants, according to a new report from Gothamist.
Lease Buyout Advisors and Metro Tenant Advisors are two companies offering to negotiate buyouts, and both say they don’t charge upfront fees. Instead, they charge commissions of between 15 and 18 percent for closed buyouts. While that’s more than double the typical 6 percent charged by a real estate broker in a sale, it’s still less than many real estate attorneys charge.
“I would never represent someone on a legal case,” Benjamin Landy, founder Lease Buyout Advisors, told Gothamist. “My expertise is getting tenants as much money as possible.”
While no data is available on the number of buyouts across the city, Landy told Gothamist business is going strong. He says he has 150 clients, and closes one buyout a week for between $7,000 and “hundreds and thousands.” [Gothamist] — Decca Muldowney