Dear Governor Hochul, We share the same mutual interest in the success of the New York City housing industry. I’m one of many salespeople representing property owners of rent regulated apartment buildings. I’m writing this letter to you on behalf of an entire industry inclusive of landlords and lenders who are too afraid to publicly tell the truth in fear of reparations, vilification, or rent strikes. We love New York City. We work, play, live, and pay taxes to the greatest city in the world, and we are here to…

The Problem In the past five years the New York City multifamily market has experienced tremendous fluctuations. The passing of HSTPA in June of 2019 was the starting point of a transformative marketplace.  COVID ushered in new regulations and record low interest rates. This was quickly replaced with rapid rates hikes causing valuations to drop precipitously. Minimal rental increases for rent stabilized properties combined with upwards pressure on costs have created a distressed situation for both borrowers and lenders. Cash flow constraints, depressed valuations, and rates doubling when loans roll…

Despite being in the commercial real estate business and not the residential market there is a surprising amount of emotion involved in my day to day. Many of the clients our team has represented in 2024 have been selling long-held family heirlooms disguised as rent stabilized apartment buildings. My goal is to clarify the underwriting norms for rent-regulated buildings in 2024, easing emotions and setting realistic expectations from the onset. How We Got Here New York is different than the rest of the country. Vacant buildings can often be more…