Thursday, March 5, 2009

Sty Town Tenants Win, Landlords Lose Big Throughout The City

Fresh in From Crain's New York Business this afternoon. A Sty Town tenants group has won a huge victory in a suit versus Tishman Speyer which claimed that Tishman could not deregulate apartments so long as they were receiving J-51 tax rebates from the city. The J-51 is set to expire in 2017. That is a long time to wait for a company that is already having financial difficulties related to it's colossal purchase of Sty Town and Peter Cooper Village for $5.4 billion in 2006. Further, the ruling, if it were to survive the appeals process could cause a bureaucratic nightmare as countless apartments would have to be re-regulated. While many tenants in the complex are probably jumping for joy, the broader ramification could be quite detrimental to city finances which tax based partially on rent rolls. The saga continues...
More: Court Deals NY Landlord Huge Setback
(Crains), Picture Courtesy The Real Deal

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