For real estate speculators, the destabilization of regulated apartments is an investment strategy.
Normandy Real Estate recently bought a building here for $6.4 million, up from $4.5 million, for which the building sold in March 2006. The City of New York got a hefty $167,952.83 in real property transfer taxes for this transaction; the State of New York got another $25,594.00.
Who is Normandy? They are located in New Jersey and hold properties all over the East Coast. Their expressed goal here is to turn stabilized apartments into market-rate apartments.
From their website:
"This portfolio of primarily rent-stabilized apartments is strategically located in Brooklyn, the Bronx, and Upper Manhattan. The investment strategy is to capitalize on the strength of the local economy and New York City rental market as well as the increased institutional appetite for New York City rent stabilized housing transactions. There is a near-term opportunity to increase cash flow by converting rent stabilized apartments to market rate as tenants vacate units."
On the East Village, from their website:
"This newly-gentrified area ... has exceptional potential for growth. There is an opportunity to increase rental income at the properties by renovating units and releasing at market rate."
Investors profit from deregulation; the city profits from investors. The fix is in.
Check out their website
These folks are big:
"Normandy Real Estate Partners, LLC is a fully integrated real estate investment management firm based in Morristown, NJ with offices in New York, Boston, and Washington, DC. Normandy has invested over $1 billion of equity totaling approximately $4 billion in asset value. Normandy recently closed on its current discretionary real estate fund, Normandy Real Estate Fund, L.P., with projected total purchasing power of approximately $1.8 billion. Targeting the northeast and mid-Atlantic markets of Boston, Metro New York City, Northern New Jersey, Philadelphia, and Metro Washington D.C., ..."