Default Worries at Housing Complexes Bought by Developers

After a Monday article about how the middle-class Harlem housing complex Riverton Houses' owners might default on their loan, the NY Times now looks other big real estate deal that might go sour. Like the Riverton Houses, Stuyvesant Town was bought by a big real estate company who hoped to convert more rent-stabilized units to market rates and make a profit (but it's been slow-going so far). And there are other possible victims, like Harlem's Savoy Park, a development bought by Credit Suisse. A Citizens Housing and Planning Council fellow tells the Times, "[Financiers] all got caught up in the bubble mentality.”

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By Jen Chung in News on August 27, 2008 8:48 AM

Comments [rss]

Snoopy

I live in Hudson Square aka West Soho and Nazareth PA so it's definitely possible to be in two places at one time. Some people can do it, others can't.

babyhitler

#9 - hey thanx for paying attention. I live in park slope AND tribeca. You can do both.

Snoopy

He gets around. Leave him alone

dr zippy

Gee, babyhitler, it was just yesterday that you lived in Park Slope.

Snoopy

Jacque, Those rents will return when they move them to the far side of Queens.

JacqueMehoff

I would live in ST or PCV if the rents were what they should be $700 for a 1bdrm.

babyhitler

I remember when I met this dude at the all points west festival and he asked where I live and I said Tribeca, I think he secretly wanted me to ask where he lived so I did and he proudly said he lived in stuyvesant town. Then I said "the white projects? how is living there?" Then his face got all dour and humiliated. Nobody wants to live in the projects even if it is nice.

Tgirl

so wait, let me get this straight:

a developer gets free land, courtesy of eminent domain, generous tax breaks for decades, and presumably operates at a profit from almost day one, all on the premise of providing middle class housing to city residents.

Some years later, said developer then sells the complex at a massive profit for 5.4 billion dollars to another developer whose only prayer of turning around any kind of profit is to screw the residents out of their homes. Unless they default which also imperils the security of the tenents, ultimately screwing them out of their homes.

Nice work.

blablanyc

I predict the Stuy Town/CPV buildings will be sold individually or in groups. This is not what we wanted in NYC.

blablanyc

The Stuy Town is despicable. They evict the residents and then use the apartments as New School dorms. Why doesn't the Mayor's office step in?

http://stuytownluxliving.com/2008/08/stuyvesant-towns-rent-stabilized-tenants-face-mass-evictions.html

nicemarmot

Funny, I said that 2 years ago when I lived in Peter Cooper Village and experienced the Tishman Speyer buyout. Housing project + money = Housing project.