Thursday, October 22, 2009

Tishman Speyer Properties lose

From the Bloomberg wire:

Tishman Rent Rise in Manhattan Voided by New York’s Top Court

By Patricia Hurtado

Oct. 22 (Bloomberg) -- Tishman Speyer Properties LP, owner of Stuyvesant Town-Peter Cooper Village, Manhattan’s largest apartment complex, lost a tenants’ lawsuit in New York state’s highest court accusing the company of improperly raising rents.

The New York Court of Appeals in Albany said today the rent increase on about 4,350 apartments in the massive complex on Manhattan’s east side violated the law because it was built with city assistance and the building’s owners received tax breaks.

The ruling upheld a decision by a lower appeals court in Manhattan. That court ruled in March that Tishman and the prior owner, MetLife Inc., wrongfully deregulated the apartments by raising the rents because of a sale of the property in 2006.

Today’s decision means the companies might have to pay millions of dollars in rent rebates to thousands of tenants. State law entitles tenants to triple damages for illegal rent increases, lawyers in the case said.

1 comment:

  1. I say we should celebrate and have a bonfire at the Oval. See how the NYU kids like that.

    ReplyDelete

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