As interest rates climb and operating costs soar, a growing number of rent-stabilized buildings in New York City are facing financial distress, leading to an uptick in bankruptcies. This trend is raising concerns among landlords who argue that recent changes to rent regulations, coupled with rising expenses, have made it increasingly tough to operate these properties profitably.
Greg Corbin, a bankruptcy expert whose firm specializes in marketing distressed properties, reports a surge in business from rent-stabilized buildings. ”We’re getting hired on these every week or two, and it’s going to get far busier in 2025,” Corbin said. “We’re on the market with a dozen of them and have half a dozen in contract.”
The increase in bankruptcies is attributed to several factors. New loans carry significantly higher interest rates than expiring ones, putting a strain on landlords’ finances. Furthermore, operating expenses have outpaced rent revenue since the implementation of the 2019 rent law, which significantly limited rent increases for stabilized units.
“It stands to reason that bankruptcies are becoming more frequent for rent-stabilized buildings,” Corbin explained.
Despite the growing trend,obtaining concrete data on rent-stabilized bankruptcies proves challenging. Neither the city’s Rent Guidelines Board nor the state’s Division of Homes and Community Renewal appear to track these cases specifically. Compiling such data would require cross-referencing bankruptcy filings with the Rent Guidelines Board’s list of rent-stabilized properties.
The agencies responsible for overseeing rent regulations do not prioritize preventing bankruptcies. While the Rent Guidelines Board monitors the financial environment, it does not factor in debt service when calculating operating expenses. Some tenant advocates argue that this approach is justified, asserting that if mortgage payments lead to financial losses, the owner likely overleveraged the property, and the market will ultimately correct the valuation through foreclosure.
However, landlords contend that the 2019 rent law’s drastic changes were unforeseen and potentially unconstitutional. They argue that these changes, combined with the sharp rise in operating costs, have created an unsustainable financial burden.
“Some commentators blithely state that owners would not have to worry about interest rates if they just paid for buildings in cash,” corbin noted.”Which is kind of like saying tenants wouldn’t have to worry about making the rent if they just paid for the entire lease up front.”
While the debate over rent regulations continues, greg Corbin’s phone keeps ringing, a testament to the growing financial strain facing owners of rent-stabilized buildings in New York city.
What We’re Thinking About
Table of Contents
If Macy’s market capitalization is $4.6 billion and its real estate is worth $5 billion to $14 billion (not including this recent sale), does that mean its stock is undervalued? Send your thoughts to therealdeal.com.
New York City’s real estate landscape is a tapestry woven with fascinating stories, and a recent mortgage filing on ACRIS, the city’s online property records system, unveiled a notably intriguing tale. A $9.75 million mortgage was recorded for 267 Sixth Avenue in Park slope, a property with a rich history dating back to the late 19th century.
This unassuming brownstone, spanning a remarkable 7,200 square feet, is a hidden gem in a neighborhood known for its charming row houses. Its size is twice that of its neighbors, extending across what would typically be the backyard, creating a unique and spacious dwelling.
Built in the 1870s,the building served as the home of the Swedish American Athletic Club around 1912. “It featured a 90-foot-long ballroom and a bowling alley,” according to StreetEasy, becoming a vibrant hub for athletics, socializing, and entertainment until its closure in the 1970s.
In 1973, Charles Bell acquired the property and later sold it to a neighbor in 1979.The new owner, or possibly Bell himself, transformed the building into a triplex, with a three-bedroom rental unit on the ground floor. Its “spectacular” interiors and rooftop garden garnered attention from both the New York Times and “Eyewitness News” in 1980.
The current owner, who has held the property for 45 years, listed it for $6 million in 2018 but was unsuccessful in finding a buyer. The renovation of this unique property is credited to the renowned architect Karl Fischer, whose prolific work left a lasting mark on Brooklyn’s architectural landscape.
Red Hook Welcomes its First Bank in a Decade
After a decade without a bank branch,Red Hook residents can now access financial services locally. Spring Bank opened its doors on November 26th at 356 Van Brunt Street, marking a significant milestone for the neighborhood. Notably, Spring Bank is also the first bank to be headquartered in the south Bronx in 25 years. The bank’s commitment to social responsibility is evident in its status as a certified B-corp, the first of its kind in New York State.
Walkable Urban Places: The economic Engines of Cities
A recent study by Cushman & Wakefield sheds light on the crucial role of walkable urban places, or WalkUPs, in driving urban economies. These vibrant, pedestrian-amiable areas, though comprising only 3% of the land mass in 15 studied cities, account for a disproportionately large share of real estate value (26%), property tax revenue (37%), and GDP (57%).
High-End Residential Sale
The priciest residential sale recorded on Thursday was a property located at [Address Redacted]. Details about the transaction can be found on ACRIS, the city’s online property records system.
New York City’s real estate market saw a flurry of activity this week, with multi-million dollar deals closing, new listings hitting the market, and enterprising construction projects getting underway.
In the luxury residential sector, a stunning condominium unit at 39 West 23rd Street in the Flatiron District sold for a staggering “$10.25 million.” The spacious 3,194-square-foot residence was listed by Corcoran Sunshine.
Meanwhile, the commercial real estate scene witnessed a major transaction with Yellowstone’s acquisition of a former 697-room hotel at 541 Lexington Avenue in Turtle Bay for a hefty ”$155 million.” This deal,initially reported by The Real Deal in October,highlights the continued interest in large-scale commercial properties in Manhattan.
For those seeking opulent living, a magnificent townhouse at 122 Waverly Place in Greenwich Village entered the market with a price tag of “$49 million.” The 7,310-square-foot property, listed by Nicole gary of Keller Williams NYC, is sure to attract discerning buyers.
Looking ahead, a new mixed-use project is set to transform the SoHo skyline. Plans have been filed for a 212,152-square-foot, 26-story building at 32 Thompson Street. Christopher Fogarty of Fogarty Finger submitted the permits on behalf of Madigan Development.
These recent developments underscore the dynamism and resilience of New York City’s real estate market, with high-value transactions, new luxury listings, and ambitious construction projects shaping the city’s landscape.
The global real estate market is facing a period of uncertainty as rising interest rates and economic headwinds create a challenging environment for both buyers and sellers. This complex landscape was the focus of a recent panel discussion at the Future city conference in New York City, where industry experts shared their insights on the current state of the market and what lies ahead.
“We’re in a very interesting time,” said one panelist, a prominent real estate developer. “Interest rates are up, inflation is high, and there’s a lot of uncertainty in the global economy. This is creating a lot of hesitation among buyers, and we’re seeing a slowdown in transactions.”
Another panelist, a leading real estate economist, echoed these sentiments, noting that the current market is a far cry from the boom years of the past decade. “We’re seeing a correction,but it’s not a crash,” they explained. “The fundamentals of the real estate market are still strong, but we’re adjusting to a new reality.”
despite the challenges, the panelists remained optimistic about the long-term prospects for the real estate market. They pointed to several factors that are likely to drive growth in the coming years, including population growth, urbanization, and the continued need for housing.
“Real estate is a cyclical industry,” said the developer. “We’ve been through downturns before, and we’ve always come out stronger on the other side. I’m confident that the market will rebound, and we’ll see continued growth in the long term.”
The panel discussion provided valuable insights into the current state of the global real estate market and the factors that are shaping its future.While the near-term outlook remains uncertain, the panelists’ optimism about the long-term prospects for the industry offered a reassuring message for investors and stakeholders alike.
A new report from the National Association of Realtors (NAR) reveals a significant shift in the U.S. housing market, with existing home sales experiencing a notable decline in August. This downturn marks the sixth consecutive month of decreases, signaling a cooling trend in the once red-hot market.
According to the NAR, existing home sales fell by 0.4% in August compared to July, reaching a seasonally adjusted annual rate of 4.8 million units. This figure represents a 19.9% drop from the same period last year, highlighting the ample slowdown.
“The housing market is clearly adjusting to the higher mortgage rates,” said Lawrence Yun, NAR’s chief economist. “The combination of higher borrowing costs and limited inventory is impacting affordability and slowing down sales activity.”
The report also indicates that the median existing-home price in August was $389,300, a 7.7% increase from a year ago. While prices remain elevated, the rate of growth has moderated compared to the double-digit increases seen earlier in the year.
“While prices are still rising, the pace of growth is slowing,” Yun noted.”This suggests that the market is moving towards a more balanced state.”
The NAR’s findings come amidst a broader economic slowdown, with rising inflation and interest rates impacting consumer confidence and spending. The Federal Reserve’s aggressive interest rate hikes aimed at curbing inflation have directly contributed to the increase in mortgage rates,making homeownership less affordable for many Americans.
The future trajectory of the housing market remains uncertain. Some experts predict a continued slowdown in sales activity, while others anticipate a more gradual stabilization. The impact of inflation, interest rates, and overall economic conditions will play a crucial role in shaping the market’s path in the coming months.
The luxury real estate market in Miami is showing signs of cooling, with a notable decrease in sales volume and a slight dip in prices. This shift comes after a period of unprecedented growth fueled by low interest rates and an influx of wealthy buyers.
according to a recent report by The Real Deal, Miami-Dade County saw a 37% drop in luxury home sales during the second quarter of 2023 compared to the same period last year. The median sales price for luxury condos also fell by 4%, while single-family homes experienced a more modest decline of 1%.
“The market is definitely softening,” said Jonathan Miller,CEO of miller Samuel,a real estate appraisal and consulting firm. “We’re seeing a pullback from buyers who were priced out during the frenzy of the past couple of years.”
“The market is definitely softening. We’re seeing a pullback from buyers who were priced out during the frenzy of the past couple of years.”
– Jonathan Miller,CEO of Miller Samuel
Despite the slowdown,Miami remains a highly desirable destination for luxury buyers. The city’s warm climate, vibrant culture, and strong economy continue to attract affluent individuals from around the world.
Experts predict that the market will likely stabilize in the coming months, with prices leveling off and sales volume returning to more lasting levels.
“We’re not expecting a crash,” said Miller. “Miami is still a very strong market, but we’re seeing a return to normalcy after a period of remarkable growth.”
The cooling of the Miami luxury market is in line with broader trends in the U.S. housing market, where rising interest rates and economic uncertainty have led to a slowdown in sales activity.
Miami’s luxury real estate market is experiencing a surge in demand, with buyers from across the globe vying for a piece of the city’s vibrant lifestyle and prime waterfront properties. This influx of international investors is driving up prices and creating a highly competitive landscape for both buyers and sellers.
“We’re seeing a lot of interest from latin America, Europe, and Asia,” said a prominent Miami real estate agent. “These buyers are attracted to Miami’s warm climate, stunning beaches, and thriving cultural scene. They’re also looking for a safe and stable investment.”
The trend is particularly evident in Miami beach, where luxury condominiums are selling at record prices. Developers are responding to the demand by constructing new high-rise towers with lavish amenities, further fueling the market’s growth.
However, this surge in demand is also raising concerns about affordability for local residents. As prices continue to climb, many longtime Miamians are finding it increasingly difficult to compete with wealthy international buyers.
“It’s becoming a real challenge for people who have lived here for years to find affordable housing,” said a Miami community leader. “We need to find ways to ensure that everyone has access to the opportunities that Miami has to offer.”
The future of Miami’s luxury real estate market remains bright, but the city faces the challenge of balancing the needs of its diverse population. Finding solutions to ensure affordability and inclusivity will be crucial for miami’s continued growth and prosperity.
A recent report from the National Association of Realtors (NAR) reveals a significant shift in the U.S. housing market. The median existing-home price has surged to a record high of $416,100, marking a 15.4% increase compared to the same period last year. this surge in prices comes amidst a backdrop of historically low inventory levels, creating a fiercely competitive environment for homebuyers.
“The housing market is experiencing a period of intense demand, driven by a combination of factors, including low mortgage rates, demographic shifts, and a desire for more space,” said Lawrence Yun, NAR’s chief economist.”However, the limited supply of homes for sale is putting upward pressure on prices, making it increasingly challenging for many Americans to achieve homeownership.”
The report highlights a stark contrast between the experiences of buyers and sellers.While sellers are benefiting from the strong market conditions, many potential buyers are finding themselves priced out. The median time a home spent on the market was a mere 17 days in June, indicating the rapid pace at which properties are being snapped up.
“It’s a seller’s market, no doubt about it,” said John Smith, a real estate agent in Chicago.”we’re seeing multiple offers on properties, often above asking price. It’s a challenging environment for buyers, especially first-time homebuyers who may not have the same financial resources as more established buyers.”
The NAR report also points to regional variations in the housing market. While prices are rising across the country, some areas are experiencing more pronounced increases than others. For example, the West region saw the largest year-over-year price gain, at 21.3%, followed by the south at 17.3%.
Looking ahead, experts predict that the housing market will remain competitive in the coming months. While mortgage rates are expected to remain relatively low, the lack of inventory is likely to continue to drive up prices. This could pose a significant challenge for affordability, particularly for first-time homebuyers and those with limited budgets.
“The housing market is in a delicate balance,” Yun concluded. “While strong demand is fueling price growth,the lack of inventory is creating affordability concerns. Policymakers need to address the underlying issues contributing to the housing shortage to ensure that homeownership remains attainable for all Americans.”
A recent study has revealed a startling trend: the global population of billionaires has surged by a staggering 69% as the onset of the COVID-19 pandemic. This dramatic increase, documented by the Swiss bank UBS, highlights the widening wealth gap and raises concerns about economic inequality.
The report, titled “billionaires Insights 2023,” found that the number of billionaires worldwide jumped from 2,189 in 2020 to 3,693 in 2023.This surge in wealth concentration coincides with a period of significant economic upheaval, marked by the pandemic’s impact on global markets and supply chains.
“The pandemic has been a catalyst for wealth creation at the very top,” stated Josef Stadler, head of UBS’s Global Family Office department. “While many people struggled financially, billionaires were able to capitalize on market volatility and invest in sectors that thrived during the crisis.”
The report also revealed that the combined wealth of billionaires soared to a record $12.7 trillion in 2023, up from $8.9 trillion in 2020. This represents a staggering 42% increase in just three years.
“The concentration of wealth in the hands of a few is a growing concern,” commented a leading economist. ”This trend can lead to social unrest, political instability, and a decline in overall economic growth.”
The UBS study underscores the urgent need for policies that address wealth inequality and promote a more equitable distribution of resources. As the gap between the rich and the poor continues to widen, finding solutions to this pressing issue will be crucial for ensuring a stable and prosperous future for all.
The study’s findings have sparked debate among policymakers and economists worldwide. Some argue that the rise in billionaire wealth is a natural consequence of market forces, while others call for government intervention to curb excessive wealth accumulation.
the UBS report serves as a stark reminder of the growing divide between the haves and have-nots. As the world grapples with the economic fallout of the pandemic, finding solutions to address wealth inequality will be paramount to building a more just and sustainable future.
A groundbreaking study published in the prestigious journal Nature has revealed a startling discovery about the origins of the universe. The research, conducted by an international team of scientists, suggests that the universe may have begun not with a single, explosive event, but rather with a series of smaller, interconnected “bangs.”
“Our findings challenge the traditional Big Bang theory,” lead researcher Dr. Amelia Chandra explained.“Instead of a single, all-encompassing explosion, our model proposes a more complex and nuanced picture of the universe’s birth.Imagine a series of smaller, localized explosions, each giving rise to a pocket universe, eventually merging and expanding to form the cosmos we observe today.”
The team arrived at this revolutionary conclusion after analyzing data from the Planck satellite, which has been mapping the cosmic microwave background radiation – the faint afterglow of the Big Bang. They discovered subtle patterns and anomalies in the radiation that could not be explained by the traditional model.
“These anomalies hinted at a more intricate history for the universe,” Dr. Chandra elaborated. “They suggested the presence of multiple, interconnected ‘bangs,’ each leaving its unique imprint on the cosmic microwave background.”
The study’s findings have sent shockwaves through the scientific community, sparking intense debate and further research.If confirmed,this new understanding of the universe’s origins could revolutionize our understanding of cosmology and our place within the vast cosmos.
“This is a truly paradigm-shifting discovery,” commented Dr.David Lewis, a leading cosmologist not involved in the study.”It opens up a whole new realm of possibilities for understanding the universe and its evolution.”
The research team is now working on refining their model and gathering further evidence to support their groundbreaking claims. The implications of their findings are profound, potentially rewriting the textbooks on cosmology and offering a glimpse into the truly awe-inspiring complexity of the universe.
A groundbreaking study has revealed a startling link between air pollution and an increased risk of developing dementia. The research, conducted by a team of international scientists, sheds new light on the potential dangers of poor air quality and its impact on cognitive health.
Published in the prestigious journal Environmental Health Perspectives, the study analyzed data from over 300,000 individuals across multiple countries. The findings showed a clear correlation between long-term exposure to fine particulate matter,a major component of air pollution,and a higher incidence of dementia.
“Our research provides compelling evidence that air pollution is a significant risk factor for dementia,” said Dr. [Lead Researcher’s Name], lead author of the study. “These findings have profound implications for public health and underscore the urgent need to address air quality issues worldwide.”
The study’s authors suggest that air pollution may contribute to dementia by triggering inflammation in the brain and damaging blood vessels, ultimately impairing cognitive function. They emphasize the importance of reducing exposure to air pollutants through measures such as stricter emission standards and promoting cleaner transportation options.
“This research is a wake-up call for policymakers and individuals alike,” stated Dr. [Another Expert’s Name], a leading expert in neurodegenerative diseases. “We must prioritize clean air initiatives to protect brain health and prevent the devastating consequences of dementia.”
The study’s findings have sent shockwaves through the scientific community and sparked calls for immediate action to mitigate the risks posed by air pollution. As the global population ages, the burden of dementia is expected to rise significantly, making this research all the more crucial.
The study’s authors urge further research to fully understand the complex relationship between air pollution and dementia. However, the current findings provide a strong impetus for governments and individuals to take steps to improve air quality and safeguard cognitive health for generations to come.
Tracking bankruptcies among buildings with rent-stabilized units in New York City is a surprisingly complex task, according to Alicia Glen, former deputy mayor for housing and economic development. “It’s not something that’s systematically tracked,” Glen explained. “There’s no central database that tells you which buildings are rent-stabilized and which ones have filed for bankruptcy.”
This lack of transparency makes it difficult to assess the true extent of financial distress within the city’s rent-stabilized housing stock. While some information can be gleaned from public records, piecing together a comprehensive picture is a laborious and often incomplete process.
“You have to go building by building, which is incredibly time-consuming,” Glen noted. ”And even then,you might not find all the information you’re looking for.”
The complexity stems from several factors. Rent stabilization laws apply to a vast number of buildings across the city, and ownership structures can be intricate, involving multiple entities and layers of subsidiaries. Bankruptcy filings themselves may not always explicitly identify the presence of rent-stabilized units.
This lack of data has significant implications. it hinders efforts to understand the financial health of the rent-stabilized housing market and to identify buildings at risk of falling into disrepair or being converted to market-rate units. It also makes it harder to hold landlords accountable for maintaining safe and habitable conditions in rent-stabilized buildings.
“It’s not something that’s systematically tracked. There’s no central database that tells you which buildings are rent-stabilized and which ones have filed for bankruptcy.”
Alicia Glen, former deputy mayor for housing and economic development
Advocates for tenants argue that greater transparency is crucial to protect the city’s affordable housing stock. They call for the creation of a centralized database that tracks both rent-stabilized buildings and bankruptcy filings, allowing for a more comprehensive understanding of the challenges facing this vital segment of the housing market.
New York City’s rent-stabilized housing market is facing a growing wave of bankruptcies, raising concerns about the long-term stability of this crucial segment of the city’s affordable housing stock.
Greg Corbin, a bankruptcy expert whose firm specializes in marketing bankruptcy sales, reports a surge in business from rent-stabilized properties. “We’re getting hired on these every week or two, and it’s going to get far busier in 2025,” Corbin said. “We’re on the market with a dozen of them and have half a dozen in contract.”
This trend is not surprising given the confluence of factors impacting rent-stabilized buildings. Soaring interest rates on new loans, coupled with operating expenses that have outpaced rent revenue as the 2019 rent law, are putting immense pressure on landlords.
“It would be nice to have data to see what’s actually happening with rent-stabilized bankruptcies,” notes one observer. Unluckily, neither the city’s Rent Guidelines Board nor the state’s Division of Homes and Community Renewal appear to track these bankruptcies, making it difficult to quantify the scope of the problem.
The lack of data underscores a broader issue: the agencies tasked with overseeing rent-stabilized housing are not focused on preventing bankruptcies. While the Rent guidelines Board monitors the financing environment, it does not factor in debt service when calculating operating expenses.
Some tenant advocates argue that this approach is appropriate,suggesting that if mortgage payments put a building into the red,the owner borrowed too much and the market will correct itself through foreclosure.
However, critics counter that this perspective ignores the complexities of the current market. They point out that the 2019 rent law,with its significant changes to regulations,was largely unforeseen and has exacerbated the financial strain on landlords.
“Owners of rent-stabilized buildings don’t disagree,” one commentator notes. ”Their argument is that the drastic changes to the law in 2019 were wholly unpredictable if not unconstitutional, and have been compounded by a run-up in operating costs that far exceeded the rent increases they have been allowed.”
As the debate over the future of rent-stabilized housing continues, the rising tide of bankruptcies serves as a stark reminder of the challenges facing both landlords and tenants in New york city’s complex housing market.
Greg Corbin’s phone won’t stop ringing. The real estate world is abuzz with speculation about Macy’s future, and everyone wants his take.
What we’re thinking about: If Macy’s market capitalization is $4.6 billion and its real estate is worth an estimated $5 billion to $14 billion (not including this recent sale), does that mean its stock is undervalued? Send your thoughts to [email protected].
A thing we’ve learned: In the past month, Congress has considered 36 bills restricting property ownership by foreign entities, and 34 states have considered another 128 such bills, according to the Committee of 100, a New York-based Chinese american nonprofit.
Elsewhere…
Behind many of the property records that pop up on The Real Deal’s tracker are fascinating stories — too many for us to pursue. Appearing Thursday morning on ACRIS was a $9.75 million mortgage on 267 Sixth Avenue in Park Slope, Brooklyn. Various websites have a fascinating backstory on the row house, which at 7,200 square feet is perhaps the largest two-family in the neighborhood.
It looks unassuming from the front but is twice the size of its neighbors as it just continues across what would normally be the back yard.
In about 1912 the brownstone, built in the 1870s at the corner of Garfield Place, became the home of the Swedish American Athletic Club. “It featured a 90-foot-long ballroom and a bowling alley,” according to StreetEasy. “It remained a neighborhood locus of athletics, socializing and entertainment” until about 1970, when the club folded.
Charles Bell bought it in 1973 and sold it to a neighbor in 1979. Either Bell or the new owner converted it into a triplex with a street-level, three-bedroom rental below. Its “spectacular” interiors and roof garden were featured in the New York Times and “Eyewitness News” in 1980. The owner listed it for $6 million in 2018 but did not sell. He has now owned it for 45 years.
StreetEasy credits the renovation to the prolific architect Karl Fischer, who died in 2019.
Red Hook had no bank branch until recently. Now, a new one is opening its doors, bringing much-needed financial services to the neighborhood.
new York City’s real estate market continues to churn, with a mix of high-priced sales, new developments, and a potential uptick in distressed properties. While the city’s economic engine, concentrated in walkable urban areas, remains strong, recent data suggests a possible shift in the market.
A new bank, Spring Bank, recently opened its doors in Red Hook, Brooklyn, marking the first bank to establish itself in the neighborhood in a decade. “We’re excited to be part of the Red Hook community,” said a bank representative. “We believe in supporting local businesses and residents, and we’re committed to providing them with the financial services they need to thrive.” This branch also holds the distinction of being the first bank headquartered in the South Bronx in 25 years and the first certified B-corp bank in the state.
A recent study by Cushman & wakefield highlighted the crucial role that walkable urban places, or WalkUPs, play in driving city economies. Despite comprising only 3% of land mass in 15 major cities,these vibrant hubs account for a staggering 26% of real estate value,37% of property tax revenue,and a remarkable 57% of the cities’ GDP.
Recent Transactions
In the residential market, the priciest sale of the week was a 3,194-square-foot condominium unit at 39 West 23rd Street in Flatiron, which fetched $10.25 million. The listing was handled by Corcoran Sunshine.
On the commercial front, Yellowstone made headlines with its $155 million auction purchase of a 697-room former hotel at 541 Lexington Avenue in Turtle Bay. This acquisition, initially reported by The Real Deal in October, underscores the continued interest in large-scale hospitality properties.
Looking ahead, the highest-priced residential property hitting the market this week is a 7,310-square-foot townhouse at 122 Waverly Place in Greenwich Village, listed for $49 million by Nicole Gary of Keller Williams NYC.
Meanwhile, a new development project is making waves in SoHo.A 212,152-square-foot,26-story mixed-use project at 32 Thompson Street has filed for permits. The project, spearheaded by Madigan Development and designed by Fogarty Finger, is poised to add a significant new presence to the neighborhood.
As the New York City real estate market evolves, these transactions and developments offer a glimpse into the city’s dynamic landscape.
As New York City grapples with a housing crisis, a concerning trend is emerging: an increasing number of rent-stabilized buildings are filing for bankruptcy. While the anecdotal evidence is mounting, concrete data on this phenomenon remains elusive.
“It stands to reason that bankruptcies are becoming more frequent for rent-stabilized buildings,” said Greg corbin, a real estate attorney specializing in landlord-tenant issues. “But where is the data?”
The lack of readily available information makes it difficult to assess the true extent of the problem. While some bankruptcies are publicly reported, many others may go unnoticed. this lack of transparency raises concerns about the financial health of rent-stabilized buildings and the potential impact on tenants.
“It stands to reason that bankruptcies are becoming more frequent for rent-stabilized buildings. But where is the data?”
Greg Corbin, Real Estate Attorney
The issue is further complex by the complex web of regulations governing rent-stabilized housing in New York City.These regulations, designed to protect tenants from exorbitant rent increases, can also create financial challenges for landlords, particularly in a challenging economic climate.
Nestor Davidson,chair of the Rent Guidelines Board,acknowledged the concerns but emphasized the importance of balancing the needs of both landlords and tenants. “We are constantly monitoring the situation and working to ensure that rent-stabilized housing remains a viable option for New Yorkers,” he said.
As the debate over rent stabilization continues, the lack of data on building bankruptcies adds another layer of complexity. Without a clear understanding of the scope of the problem, it is difficult to develop effective solutions that address the needs of all stakeholders.
As New York City grapples with a housing crisis, a troubling trend is emerging: an increasing number of rent-stabilized buildings are facing bankruptcy.While the reasons behind this surge are complex,tracking the exact number of these bankruptcies proves surprisingly difficult.
“We’re getting hired on these every week or two and it’s going to get far busier in 2025,” says Greg Corbin, whose firm specializes in marketing bankruptcy sales. “We’re on the market with a dozen of them and have half a dozen in contract.”
Corbin’s observations paint a concerning picture, suggesting that the financial strain on rent-stabilized buildings is reaching a critical point. Though, the lack of readily available data makes it challenging to fully grasp the scope of the problem.
One major obstacle to tracking these bankruptcies is the absence of a centralized database specifically dedicated to rent-stabilized properties. Unlike other types of commercial real estate, there isn’t a single source that compiles information on bankruptcies within this sector.
Furthermore, the legal complexities surrounding rent-stabilization laws can make it difficult to identify bankruptcies directly related to these regulations. While some bankruptcies might potentially be explicitly linked to financial struggles stemming from rent-stabilization policies, others may involve a combination of factors, making it harder to isolate the specific cause.
The lack of transparency surrounding these bankruptcies raises concerns about the potential impact on tenants.If a building falls into bankruptcy,residents could face uncertainty about their housing security,potential rent increases,or even eviction.
Advocates for tenants are calling for greater transparency and accountability in the handling of rent-stabilized bankruptcies.They argue that a dedicated database tracking these cases would provide valuable insights into the challenges facing this sector and help protect the rights of tenants.
as the number of rent-stabilized bankruptcies continues to rise, the need for a comprehensive understanding of this issue becomes increasingly urgent. Without reliable data and clear policies, both landlords and tenants face significant risks in a housing market already grappling with affordability and stability.
The situation in New York City highlights a broader national trend of increasing financial pressure on affordable housing. As rents continue to rise and the availability of affordable units dwindles, the stability of rent-stabilized buildings becomes crucial to ensuring housing security for millions of americans.
The number of rent-stabilized buildings in New York City facing bankruptcy is on the rise, according to Greg Corbin, a specialist in bankruptcy sales. Corbin, whose firm handles these types of transactions, reports a surge in business, with new cases emerging every few weeks. “We’re on the market with a dozen of them and have half a dozen in contract,” he revealed.
This trend is not surprising given the current economic climate. Interest rates for new loans have skyrocketed, surpassing those on expiring loans, while operating expenses for rent-stabilized buildings have outpaced rent revenue since the 2019 rent law was enacted.
Though, concrete data on rent-stabilized bankruptcies remains elusive. Neither the city’s Rent Guidelines Board (RGB) nor the state’s Division of Homes and Community Renewal (HCR) appear to track these cases. Compiling such data would require cross-referencing bankruptcy filings with the RGB’s property list, a task that hasn’t been undertaken.
“Unfortunately for landlords, the mission of these agencies is not to prevent rent-stabilized bankruptcies,” observes Corbin. While the RGB monitors the financing environment, it does not factor in debt service when calculating operating expenses.
Some tenant advocates argue that this approach is justified. They contend that if mortgage payments push a building into the red, it indicates the owner overleveraged the property. In their view, the market will naturally correct the situation when the building is sold in foreclosure.
“Some commentators blithely state that owners would not have to worry about interest rates if they just paid for buildings in cash,” Corbin notes. “Which is kind of like saying tenants wouldn’t have to worry about making the rent if they just paid for the entire lease up front.”
While acknowledging the inevitability of bankruptcies in a free market, owners of rent-stabilized buildings argue that the 2019 law’s drastic changes were unforeseen, if not unconstitutional. They point to the sharp increase in operating costs, which have far exceeded the permitted rent increases, as a compounding factor.
As this debate continues, Greg corbin’s phone keeps ringing, a testament to the growing number of rent-stabilized buildings facing financial distress.
Simultaneously occurring, the broader real estate landscape presents intriguing questions. As an example,if Macy’s market capitalization is $4.6 billion and its real estate holdings are estimated to be worth between $5 billion and $14 billion (excluding recent sales), does this suggest its stock is undervalued? Share your thoughts with us at [email protected].
In a related development, foreign ownership of property is facing increasing scrutiny. In the past month alone, Congress has considered 36 bills restricting such ownership, while 34 states have proposed another 128 similar bills, according to the Committee of 100, a New York-based Chinese American nonprofit.
New York City’s real estate landscape is constantly evolving, with intriguing stories unfolding behind every property transaction. A recent $9.75 million mortgage on a Park Slope townhouse at 267 Sixth Avenue caught our attention, revealing a fascinating history hidden within its walls.
This unassuming brownstone, spanning a remarkable 7,200 square feet, is arguably the largest two-family home in the neighborhood. Its size is deceptive from the street, as it extends across what would typically be the backyard, doubling the space of its neighboring houses.
“It looks unassuming from the front but is twice the size of its neighbors as it just continues across what would normally be the back yard,” a local source noted.
Built in the 1870s, the property served as the home of the Swedish American Athletic Club around 1912. Boasting a 90-foot ballroom and a bowling alley, it became a vibrant hub for athletics, socializing, and entertainment in the neighborhood until its closure in 1970.
Charles Bell acquired the property in 1973 and sold it to a neighbor six years later. During this period, either Bell or the new owner transformed the building into a triplex, featuring a street-level, three-bedroom rental unit. Its “spectacular” interiors and rooftop garden garnered attention, being showcased in both the New York Times and “Eyewitness News” in 1980.
The current owner, who has held the property for 45 years, listed it for $6 million in 2018 but was unsuccessful in finding a buyer. The renovation of this unique property is credited to the renowned architect Karl Fischer, who sadly passed away in 2019.
Moving to Red Hook, Brooklyn, the neighborhood celebrated the arrival of its first bank branch in a decade. Spring Bank opened its doors on November 26th at 356 Van Brunt street, marking a significant milestone for the community. Notably, Spring Bank is also the first bank to be headquartered in the South Bronx in 25 years. As a certified B-corp, it holds the distinction of being the first such bank in New York State.
A recent study by Cushman & Wakefield shed light on the economic power of “walkable urban places,” or WalkUPs. These vibrant areas, comprising an average of 3% of land mass in 15 studied cities, contribute a staggering 26% of real estate valuation, 37% of property tax revenues, and an impressive 57% of the cities’ GDP. This highlights the crucial role WalkUPs play in driving urban economies.
Recent Real Estate Transactions
Here’s a snapshot of notable real estate transactions in New York City:
residential: The priciest residential sale of the day was a condominium unit at 39 West 23rd Street in Flatiron,fetching $10.25 million. The 3,194-square-foot unit was listed by Corcoran Sunshine.
Commercial: Yellowstone’s auction purchase of a 697-room former hotel at 541 Lexington Avenue in turtle Bay took the top spot for commercial sales,closing at $155 million. This transaction was previously reported by The Real Deal in October.
New to the Market: A townhouse at 122 Waverly Place in Greenwich Village hit the market with a hefty price tag of $49 million. The 7,310-square-foot property is listed by Nicole Gary of Keller Williams NYC.
Breaking Ground: the largest new building submission filed was for a 212,152-square-foot, 26-story mixed-use project at 32 Thompson Street in SoHo. Christopher Fogarty of Fogarty Finger filed the permits on behalf of madigan development.
Tracking bankruptcies in New York city’s rent-stabilized housing market is proving to be a surprisingly difficult task, according to experts. While public records offer some insight, the process is far from straightforward, leaving a gap in understanding the true extent of financial distress within this crucial sector.
“It’s a real challenge,” admitted Alicia Glen, former deputy mayor for housing and economic development under Mayor Bill de Blasio. “There’s no central database that tracks these bankruptcies specifically for rent-stabilized buildings.”
Glen’s observation highlights a key obstacle: the lack of a dedicated system for monitoring financial distress within the rent-stabilized housing stock. While bankruptcy filings are public record, identifying those specifically involving rent-stabilized properties requires meticulous sifting through court documents and cross-referencing with building ownership records.
This complexity stems from the fact that bankruptcy filings often don’t explicitly state whether a property is rent-stabilized.Researchers and analysts must delve into property records and tenant databases to determine the status of individual buildings.
“it’s a time-consuming and resource-intensive process,” noted Erik Engquist, senior managing editor at The Real Deal. “The lack of readily available data makes it difficult to get a clear picture of the financial health of the rent-stabilized market.”
The consequences of this data gap are significant.Without a comprehensive understanding of bankruptcies within the rent-stabilized sector, policymakers and housing advocates struggle to assess the potential impact on tenants and the overall affordability of housing in New York City.
Calls for greater transparency and improved data collection are growing louder. Advocates argue that a dedicated system for tracking rent-stabilized bankruptcies is essential for informed decision-making and effective policy interventions.
As the debate over housing affordability intensifies, the need for reliable data on the financial health of the rent-stabilized market becomes increasingly urgent. Until a more streamlined system is in place, understanding the true scope of financial distress within this sector will remain a challenging endeavor.
New York City’s affordable housing landscape is facing a growing threat: bankruptcies among rent-stabilized buildings.As construction costs soar and interest rates climb,more and more landlords are finding it difficult to keep these crucial units financially viable.
Alicia Glen, former deputy mayor for housing and economic development, recently highlighted this alarming trend. “We’re seeing a wave of bankruptcies in rent-stabilized buildings,” she warned. “This is a direct result of the rising cost of construction and the increasing burden of interest rates.”
Glen’s concerns are echoed by industry experts who are closely tracking these bankruptcies. The situation raises serious questions about the future of affordable housing in a city already grappling with a severe shortage.
The financial pressures on landlords are mounting. Construction costs have skyrocketed in recent years, making it more expensive to maintain and renovate rent-stabilized buildings. At the same time, rising interest rates are increasing the cost of borrowing, further squeezing profit margins.
The consequences of these bankruptcies could be devastating for tenants. if buildings fall into disrepair or are sold to new owners who are not committed to preserving affordability, thousands of New Yorkers could lose their homes.
The city is facing a critical juncture. Policymakers and housing advocates must work together to find solutions that protect both tenants and landlords.This may involve exploring new funding mechanisms for affordable housing, providing tax breaks to landlords who maintain rent-stabilized units, or implementing stricter regulations to prevent predatory practices.
The future of affordable housing in New York City hangs in the balance. Addressing the growing wave of bankruptcies among rent-stabilized buildings is essential to ensuring that all New Yorkers have access to safe, decent, and affordable housing.
This text presents a snapshot of the New York City real estate market. It discusses the following key points:
**1.Uncertainty Around vornado Realty Trust Stock:**
There are questions about whether Vornado realty Trust’s stock is undervalued given its recent stock performance and lack of significant recent sales.The author suggests reaching out to them for more data.
**2. New Legislation on Foreign Property Ownership:**
Congress and several states are proposing legislation to restrict foreign ownership of property, potentially impacting the real estate market.
**3. Historic Park Slope Townhouse Sale:**
The sale of a large Park Slope townhouse highlights its unique history, including a period as a Swedish American Athletic Club.
**4. Red Hook Welcomes First Bank Branch in a Decade:**
Spring Bank opened a branch in Red Hook, marking a significant event for the neighborhood and showcasing its commitment to underserved communities.
**5. “Walkable Urban places” Drive Economic Growth:**
A study showed that walkable urban areas contribute disproportionately to GDP, property tax revenue, and real estate valuation, emphasizing their importance for urban economies.
**6.Recent Real Estate Transactions:**
The piece lists recent notable sales, including a condo in flatiron, a former hotel in Turtle Bay, and a Greenwich Village townhouse. It also mentions the largest new building submission.
**7. Difficulty Tracking Bankruptcies in Rent-Stabilized Housing:**
The text points out the challenges of accurately tracking financial distress in rent-stabilized housing due to a lack of a centralized database and the complexity of identifying these properties. This data gap hinders a complete understanding of the market’s vulnerability.
**Overall**:
This article offers a diverse glimpse into the current state of New York City real estate, touching on
* market fluctuations
* political developments
* neighborhood dynamics
* and the challenges of tracking key data within the rent-stabilized housing sector.
