Friday, December 5, 2008

Entire East Village practically for sale

Jill mentioned this Wednesday at Blah Blog Blah. Now Curbed has all the gory details:

Brokerage giant Massey Knakal has announced, in an e-mailed press release and on its blog, that the firm has been retained to arrange the sale of 17 walk-up apartment buildings in the East Village. But not just any 17! The mix of buildings—sprinkled throughout the 'hood in many shapes and sizes and with widely varying numbers of rent-stabilized apartments per building—make up the "East Village Portfolio," purchased by megadeveloper Extell for $72 million in 2006 before the company spun if off to former cohort Westbrook Partners for $97.5 million in the summer of '07

The portfolio is going for $120 million.

According to Massey Knakal, "The rent regulated units are renting for as low as 20% of market creating a tremendous opportunity to increase revenue in the future. All of the free market units have been recently renovated featuring new hardwood floors, stainless steel appliances and granite countertops."

Curbed has photos of the 17 properties on the block.


Anonymous said...

Thanks for the heads up, EV.

I live in one of these buildings, and Westbrook has been hell, to say the least (Extell pretty much left us rent stabilized people alone, at least in my building). Now, I am not looking forward to another flip, but here's the thing:

1. The 17 buildings can now be purchased separately, which may mean improved landlord-tenant relations in some cases, instead of the current collective of tenants dealing only with the shadowy PVE Associates and the repulsive Josh.
2. In some buildings, up to 40% of the rent-regulated tenants have already been forced out, meaning the ones who remain are: in possession of solid leases; good tenants who pay rent on time and do not sublet illegally, etc.; and have been through this fight for the past several years and know their rights.

Adding to this, I assume new landlords will want to avoid the terrible recent press Westbrook has received.

Finally "renting for as low as 20% of market" is deceiving. The individual listings linked to at Curbed show that there are far more stabilized units left than controlled ones. I am stabilized and my rent is only about 10% below market. In NYC's uncertain future, it may be better to have rent-stabilized people adding to the rent rolls than vacant apartments contributing zero.

Or I am being a completely naive optimist, and more unforeseeable hell awaits. ;)

EV Grieve said...

Thanks for the comment...I'll share it out front, if you don't mind...

I do hope that it all works out for you and everyone in the buildings.

Anonymous said...

Wow, my very own post! I am so honored, truly (I love your blog and visit it every day).

Thanks for the well-wishes too, EV.

EV Grieve said...

I appreciate that...Thanks for the kind words.