Some Investors Change Plans as City Protects Rent-Stabilization

Some investors have scaled back their plans to raise the rents at rent-stabilized buildings. That’s because city officials are aggressively enforcing laws to protect residents under rent-stabilization.

“We’ve seen it as a seller. As the city targets various neighborhoods… there is definitely more of a concern in the marketplace,” said Adam Mermelstein of Treetop Development, speaking at “Coffee and Cap Rates,” held Feb. 8, 2018 at Club 101 in New York City.

However, the panelists at “Coffee and Cap Rates” have not changed how much they are willing to pay for apartments. “It hasn’t changed our valuation. We have always been conservative in our assumptions on turnover,” said Seth Weissman (pictured) of Urban Standard Capital. “I am in favor of it.”

Also, certain new rules, such as the city’s plan to provide tenants with legal representation in housing court, could add clarity and regularity to the process of resolving tenant disputes, said Weissman.

For comments, questions or concerns, please contact our New York commercial real estate editor Bendix Anderson