Back in August, news broke that Red Square, the residential complex at 250 E. Houston St. between Avenue A and Avenue B, was in contract for some $100 million, according to published reports.
Ahead of the final sale, the statue of Lenin was removed last month from atop the 13-floor building. (It will reign again nearby on Norfolk Street.)
Now a building resident passes along a letter that he or she received from the Dermot Co. announcing the new ownership...
The new owner is 250 Houston Investors, LP, and is managed by Dermot. (A news release on the deal, which didn't disclose the terms, states that "The Dermot Company, in partnership with Rockwood Capital, LLC, announced the joint-venture acquisition of 250 East Houston St.")
The letter to current residents also notes that 250 East Houston (the name Red Square has apparently been retired) "will be undergoing a renovation project that will encompass updating common area spaces, adding amenities, renovating apartments and upgrading building systems."
According to the reader, one of the first actions by the new management was to "cut the staff salaries by 30 percent. The doormen were making around $16/hour, now cut to $11. They were given ONE DAY to accept or leave. Not being union employees, they had little choice."
The reader continued: "Should be interesting to see these new owners try to sell this place as 'luxury' with unhappy employees."
Both elevators at 250 Houston have been malfunctioning for more than a year. Shoddy and ineffective repairs are being made as often as 4-6 times a week and have not alleviated severe problems in either elevator.
And what about new ownership?
The elevators need immediate and substantial repairs. The new management will replace them — there's even a rumor that they are going to take both offline to do that.
I don't feel safe using them — and they shouldn't be allowed to operate that way for the next 6-12 months.
The building, which features 130 rental units, also has 23,000 square feet of retail space. According to the Post last August, the retail space was not going to be part of the deal. There are four vacancies in this strip of shops, which include a Dunkin' Donuts, Subway (sandwich shop), Sleepy's (for the rest of your life), China Town Chinese restaurant and a FedEx Office Print & Ship Center.
Per Streeteasy, there are currently two rentals available. A 2-bedroom apartment with balcony for $4,875 and a 1-bedroom unit for $3,000.
The building, the creation of Michael Rosen, opened in June 1989.
Previously on EV Grieve:
Rumors: Red Square has been sold