Affordable Housing Opening in Midtown’s Garment District

By Manhattan Real Estate Tracker, July 2, 2024

The lottery for a newly constructed 19-story building at 339 West 38th Street is open until August 19, 2024. The Department of Housing Preservation and Development states that the apartments in this building have washers and dryers. There is also a lounge, outdoor terrace, fitness center, ping pong center, bike storage, tenant storage, and conference center in the building. The building will also have a 24-hour lobby attendant and two package rooms. Tenants will pay for electricity including electric cooking and heating, the rent includes hot water. The eligible household income range is $31,612 to $218,010. More information can be found at the HPD website at Lottery Details -Housing Connect (nyc.gov)

Photos of 339 West 38th Street from HPD

American Strategic Investment Company to Sell 9 Times Square for a Big Loss

By Manhattan Real Estate Tracker, June 27, 2024

Manhattan Real Estate Tracker has learned that the financially troubled American Strategic Investment Company (ASIC) has entered into a contract to sell the building at 9 Times Square for $63.5 million. The company will be taking a huge loss on the sale price since according to company records, the property was purchased for $162,291,000 prior to 2015 – a loss of more than $98 million. Formerly New York City Reit trading under the NYC symbol, the company changed the name to American Strategic Investment Company in an effort to purchase property outside of the city. This REIT has been a disaster for investors who have lost a huge amount of their initial investment. The stock went public 2021 and has dropped approximately 90% in value. After paying off the loan, the sale is expected to net only $13.5 million which the company claims will be used to buy other properties outside of Manhattan. The sale price of 9 Times Square reflects how the Midtown office market has plunged since the pandemic resulted in many employees working remotely.

Manhattan Real Estate Tracker spoke with a couple of law firms this week who have shuttered their Manhattan offices giving back large chunks of space to the landlord. Some companies have most of their employees working remotely with only a receptionist and a few conference rooms to meet with clients. Other law firms outside the city in New Jersey and Long Island have also closed offices and are working remotely. The same business model change has also occurred in the insurance industry with many adjusters now working from home.

Michael Anderson, the Chief Executive Officer of ASIC stated, “We expect this sale to generate approximately $13.5 million in net proceeds at closing, which we intend to use to pursue the expanded asset acquisition and diversification strategy into higher yielding assets that was announced last year. Additionally, if completed, we expect that this strategic disposition will strengthen our balance sheet.”

More information on the sale of 9 Times Square can be found on the ASIC website.

Real Estate Agents Rally to Stop Intro 360 at New York City Hall

Real Estate Agents Rally to Stop Intro 360 at New York City Hall

By Manhattan Real Estate Tracker, June 12, 2024

Rally to stop Intro 360 real estate New York

Real estate agents and brokers came out this morning to City Hall in Downtown Manhattan today to rally against Intro 360 which would require only those who hire a real estate agent to the broker fee. While all commissions are negotiable, typically the broker fee for leasing an apartment is 15 percent of the first year’s rent. New York City is unlike any city in the country, Manhattan Real Estate Tracker strongly opposes Intro 360.

According to the co-sponsor of the measure, City Council member Chi Ossé, renters deposit $10,000 on average for a new home. One major expense he wants to eliminate is the mandatory broker fee. However, landlords will simply raise the rent and in the long run, the renter would have paid more in rent than if they paid a broker fee and received a lower starting rent.

Tenants claim that they had to pay the broker fee even though “they didn’t hire a broker.” When an agent markets an apartment for rent and a potential tenant inquires about it, it was the agent’s experience and knowledge of real estate and marketing that not only secured the exclusive listing but also generated the call. This work has value and in certain cases, the agent should be compensated by the renter.

Links to local online articles regarding today’s rally and Intro 360 from local New York television stations can be found below.

ABC 7 New York NYC Council considers shifting broker fees to landlords – ABC7 New York (abc7ny.com)

CBS 2 New York Public hearing on NYC real estate broker fee reform gets heated. What people on both sides of the issue are saying. – CBS New York (cbsnews.com)

Article from the Real Estate Board of New York (REBNY) regarding Intro 360:

1,500 Agents Rally at City Hall to Oppose Broker Fee Bill | Rebny

Rally at City Hall to Oppose Bill Int. 360 that Would Stop Agents of a Landlord from Collecting a Broker’s Fee from a Renter

Manhattan Real Estate Tracker will be attending the rally at City Hall on Wednesday, June 12, 2024 to oppose Int. 360. This bill would stop real estate brokers and agents of a landlord from collecting a broker’s fee from a renter. All agents and brokers can attend to support the opposition of this bill.

The City Council states, “This bill would require an individual who is a representative or an agent of a property owner or a prospective tenant in a residential rental real estate transaction to collect fees charged in the transaction from the party employing the individual. The provisions of this bill would not impact the collection of fees by a landlord or property owner.”

Construction threatens one of city’s first landmarks, advocates say

From NY1.com:

By Eric Feldman Manhattan

PUBLISHED 10:45 AM ET May 15, 2024

One of the first buildings protected by New York City as a landmark could be in danger of being destroyed. The team at the Merchant’s House said they believe construction that has been approved next door could cause irreversible damage.

Take away the modern plumbing and electrical upgrades, Merchant’s House is a 19th century single-family home preserved inside and out, according to Pi Gardiner, the museum’s executive director.


What You Need To Know

Merchant’s House is a 19th century home that has been preserved inside and outside
It is a landmark at the local, state and federal level
Engineers and attorneys representing the home believe construction next door could damage, even destroy, the landmark
The Landmarks Preservation Commission said they believe a stricter standard of precautions were approved for the project to move forward

“This is one of a kind,” she said. “There’s nothing like it.”

Nearly 60 years ago, the Landmarks Preservation Commission was empowered to protect historic sites around the five boroughs. Gardiner said Merchant’s House was the first approved by the commission in Manhattan.

Yet now, she and others are afraid it could be in danger.

“This is the most dangerous project I’ve seen approved in the 30 years I’ve been doing this work,” said Michael Hiller, a lawyer who is representing Merchant’s House.

He has been fighting against the proposed development of a garage next door.

In 2018, NY1 covered the effort by a developer to build a hotel. It was a project the LPC approved in 2014. Hiller had concern about the construction next door damaging Merchant’s House.

Ultimately, the City Council rejected it.

However, this past December, the LPC approved a new project to turn that garage into a commercial office building.

An LPC spokeswoman said the passage came with contingencies to protect Merchant’s House. There were 10 listed, including more testing for soil conditions, requiring excavation of the building to be further from Merchant’s House and enhanced vibration monitoring from construction.

It also requires real-time notification to Merchant’s House of construction updates and data.

The spokeswoman called it “stricter than what is normally required under current building code.”

Hiller said, though, he’s not convinced and doesn’t even believe the LPC reviewed the documents Merchant’s House engineers submitted. He pointed out the following exchange in the December meeting.

“Has the Merchant’s House reviewed this plan? And have they any comments on it,” said one of the commissioners to the developer’s engineer.

“Yes. Yes they have,” responded the engineer.

“Do they have a consulting engineer or somebody who is advising them on this,” asked that same commissioner.

The commissioner was seemingly unaware Merchant’s House in fact has a consulting engineer, who submitted a report to the commission chair four days before the meeting. The report claims the developers’ engineers may have incorrectly calculated the weight of the building and that foundation shifting could be three times the allowable limit.

While the developer’s engineers pledged to stop construction at a threshold below the foundational shifting limit, Hiller did not believe the project would truly stop. He said, furthermore, the problem is that no one seemed aware of the potential issue. 

“The fact is none of them spoke up because none of them had read the materials,” said Hiller.

Hiller said he was further convinced when the commission asked for a new study on the potential impact construction could have on Merchant’s House’s plaster, which is from the 19th century.

Hiller said engineers for Merchant’s House did a plaster study 10 years ago, raising questions and concerns about the impact from next door construction.

While the commissioners said they received more than 600 emails in opposition to the project, it was approved in December.

“Keeping our city’s landmark buildings safe and secure is a top priority, and when considering proposals for work adjacent to designated properties, the agency coordinates closely with DOB and requires building owners to use enhanced safeguards to protect these landmark buildings when appropriate,” said an LPC spokeswoman in an emailed statement to NY1. “Regarding Merchant’s House Museum, the Commission required that proposed work on the adjacent property at 27 E. 4th Street include stringent measures to ensure the integrity of Merchant’s House. The plan approved by the Commission includes stabilization and protective methods that are stricter than what is normally required under current building code, and includes enhanced monitoring and real-time notifications.”   

In a city always changing and growing, Merchant’s House has stood the test of time. Its leadership said the question now is whether it will continue to.

This article is from NY1.com.

Advance Monthly Sales for Retail and Food Services

MAY 15, 2024

Advance Estimates of U.S. Retail and Food Services

Advance estimates of U.S. retail and food services sales for April 2024, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $705.2 billion, virtually unchanged (±0.4 percent) from the previous month, but up 3.0 percent (±0.5 percent) above April 2023. Total sales for the February 2024 through April 2024 period were up 3.0 percent (±0.5 percent) from the same period a year ago. The February 2024 to March 2024 percent change was revised from up 0.7 percent (±0.5 percent) to up 0.6 percent (±0.1 percent).

Retail trade sales were virtually unchanged (±0.4 percent) from March 2024, but up 2.7 percent (±0.5 percent) above last year. Non-store retailers were up 7.5 percent (±1.6 percent) from last year, while food services and drinking places were up 5.5 percent (±2.1 percent) from April 2023.

Permits Filed For 489 Ninth Avenue in Midtown West, Manhattan

From: Yimby

Image from Google.com.

BY: VANESSA LONDONO 6:30 AM ON SEPTEMBER 24, 2022

Permits have been filed for an 11-story mixed-use building at 489 Ninth Avenue in Manhattan’s Midtown West. Located between West 37th and West 38th Streets, the lot is four blocks from 34th Street-Penn Station subway station, serviced by the A, C, and E trains. Susan Wu of ZD Jasper Realty is listed as the owner behind the applications.

The proposed 120-foot-tall development will yield 63,264 square feet, with 57,250 square feet designated for residential space and 6,013 square feet for commercial space. The building will have 59 residences, most likely condos based on the average unit scope of 970 square feet. The concrete-based structure will also have a cellar and a 30-foot-long rear yard.

Archimaera Architecture is listed as the architect of record.

Demolition permits will likely not be needed as the lot is vacant. An estimated completion date has not been announced.

Investment in Fair Housing Testing Program Will Increase Investigations into Housing Discrimination and Enhance Education and Outreach Efforts on Fair Housing Rights

From the New York Governor’s Office

Governor Kathy Hochul today announced a $2.2 million expansion of New York’s Fair Housing Testing Program designed to root out discrimination in home rental and sale transactions. New York State partnered with six nonprofit organizations across the state to deploy undercover testers to act as potential renters and home seekers. The expansion will increase proactive investigations of suspected housing discrimination and enhance education and outreach efforts on fair housing rights, including for individuals with a history of criminal system involvement.

“As we expand access to housing across New York State, I am using all of the resources at my disposal to combat housing discrimination and ensure that all New Yorkers are treated with dignity, fairness, and respect when seeking the housing of their choice,” Governor Hochul said. “Our investment in this crucial program sends a clear message: housing discrimination will not be tolerated here in New York.”

The Fair Housing Testing Program is administered by New York State Homes and Community Renewal’s Fair and Equitable Housing Office and expands the pilot testing program established by the office in 2021. The program also provides continuity to the Eliminating Barriers to Housing New York testing and outreach program launched by the New York Office of the Attorney General in partnership with Enterprise Community Partners.

HCR has finalized contracts with six organizations to conduct testing in 48 counties including Nassau and Suffolk, Westchester, Albany and Schenectady counties, as well as the five boroughs of New York City. The fair housing testing and outreach partners are: CNY Fair Housing, the Fair Housing Justice Center, Housing Opportunities Made Equal, Legal Assistance of Western New York, Long Island Housing Services, and Westchester Residential Opportunities. These nonprofit housing agencies will dispatch trained fair housing “testers” to act as potential renters or home seekers to uncover unlawful discriminatory treatment by sellers, brokers, and landlords.

The program’s outreach and training will focus on fair housing protections including for those with arrest and conviction histories. The outreach includes advertisements and social media messaging, training events, and professional education classes.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Housing is an essential human right and we must continue to use every tool at our disposal to ensure that all New Yorkers have a fair and equal opportunity to live in the communities of their choice. Our Fair Housing Testing program complements Governor Hochul’s New York Housing Compact, which will proactively address disparities in housing access, exclusionary zoning, and other barriers that impede fair housing goals, and help us build a better and more equitable New York for all.”

More information on Fair Housing can be found on HCR’s website: hcr.ny.gov/feho.

Marlene Zarfes, Executive Director of Westchester Residential Opportunities, said, “This work is critical to ensuring a housing market in the Lower Hudson Valley in which every household has an equal opportunity to participate, regardless of skin color, ethnicity, source of income, disability or any other protected class.”

Elizabeth Grossman, Executive Director of the Fair Housing Justice Center, said, “The Fair Housing Justice Center is immensely grateful for this support from HCR and we are eager to get to work on new testing and outreach activities. Testing remains a critical tool for fair housing organizations to use in the fight against discrimination, and we look forward to conducting robust investigations throughout the New York City region. The outreach funding will provide an enhanced opportunity for us to increase awareness of fair housing rights and responsibilities, especially the strong protections that New York State has put in place to counter source-of-income discrimination, and to provide training to tenants, home seekers, and housing providers. Thanks to the support of HCR, people throughout our service area will know that they can come to us for help, and that our programs will get them the help they need.”

Ian Wilder, Executive Director of Long Island Housing Services, said, “Long Island Housing Services is grateful to New York State for supporting much needed fair housing work. This funding allows us to assist in enforcing the very necessary protections afforded under New York State law. Even more so, it enables Long Islanders move toward a home that we all strive for where our neighbors can choose to live wherever they want free of discrimination. Only by overcoming housing discrimination can we free Long Islanders to live their best lives.”

DeAnna Eason, Executive Director of Housing Opportunities Made Equal, said, “Education and outreach are imperative to the eradication of discrimination in housing and the furtherance of fair housing. HOME appreciates the support of NYSHCR in combating bias in housing, and the promotion of diversity and equality in our communities.”

Sally Santangelo, Executive Director of CNY Fair Housing, said, “CNY Fair Housing has a long history of fighting barriers to housing in the Syracuse region. With this funding, we will be able to conduct more fair housing testing and outreach to our region and beyond. We look forward to continuing partnership with New York State Homes and Community Renewal to eliminate discrimination in housing.”

What are Rent Controlled and Rent Stabilized Apartments in New York City

Programs for regulating rent, known as rent control and rent stabilization, are in place in several communities around New York State. Rent regulation has two purposes: first, to shield tenants in privately held buildings from unlawful rent hikes; second, to enable building owners to maintain their properties while making a fair profit. Of the two rent regulation schemes, rent control is the more established one. It was first implemented in response to the housing scarcity that followed World War II and is typically applicable to structures built before 1947. In general, rent stabilization applies to apartments that were freed from rent control and buildings constructed after 1947 but before 1974. It also includes buildings that are eligible for tax incentives under J-51, 421-a, and 421-g. The apartments that are eligible for these tax benefit programs are determined by their own set of regulations.

Rent stabilization outside of New York City is also referred to as ETPA, or the Emergency Tenant Protection Act, and it’s legal in a few counties and places (see Fact Sheet #8). Rent stabilization can also apply to housing accommodations whose rentals are set by public benefit corporations, DHCR, and other government bodies, as outlined in the rent regulations.

Rent Stabilization
In addition to limiting the amount of rent increases, rent stabilization offers tenants protections. Tenants are entitled to the provision of necessary services, the renewal of their leases, and are not subject to eviction unless there are legally permissible reasons. Tenants have the option to extend their leases for one or two more years. Tenants can use a number of forms developed by the Division of Housing and Community Renewal (DHCR) to make pertinent complaints. After serving the owner with the complaint and gathering evidence, DHCR must issue a formal order that is appealable.

DHCR has the authority to lower rent and impose civil penalties on the owner in cases when a tenant’s rights are infringed. Should you fail to maintain services, your rent may be lowered. If there is an overcharge, the DHCR may impose interest penalties or triple damages that must be paid by the tenant.

Rent Control
Rent control restricts the amount of rent an apartment owner can charge as well as the owner’s ability to evict residents. Additionally, tenants are entitled to certain necessities. Since tenants are regarded as “statutory” tenants, owners are not obligated to provide renewal leases. Tenants can use a number of forms developed by DHCR to file pertinent concerns. After serving the owner with the complaint and gathering proof, DHCR is authorized to issue a written order that is appealable. Rents may be lowered and civil penalties may be imposed by DHCR on the owner in the event that a tenant’s rights are infringed. Reduced rent is a possibility if services are not kept up. When there is an overcharge, the DHCR may determine the legally collectible rent.

Please refer to an attorney for legal advice regarding your specific situation. Additional information can be found at the Department of Homes and Community Renewal.

Flaco’s Laws introduced to New York City Council in honor of beloved Central Park owl

A New York City Councilman introduced a package of bills in honor of the beloved celebrity owl who died after surviving in the wild on his own for more than a year after leaving the Central Park Zoo.

Elected officials, scientists, bird experts and New Yorkers held a City Hall rally Thursday to announce the introduction of the historic package of bills.

Flaco died after eating pigeons infected with virus and was exposed to rat poison before flying into an Upper West Side building on Feb. 23.

Council Member Shaun Abreu introduced the first of three pieces of “Flaco’s Laws” to stem unnecessary bird deaths like Flaco’s. One part of the bill would require the health department to replace rat poison with rat birth control.

“Flaco’s autopsy confirmed our worst fears: he ingested a fatal dose of rat poison. Rodenticides are not only toxic for the animals we love, they are increasingly ineffective at reducing rat infestations. It’s time we put new practices in place to build a better, safer, more eco-friendly city,” said Abreu said. “We can’t poison our way out of the rat problem, but we can certainly do a lot of damage trying.”

Another bill would address light pollution and reflective windows on buildings that disorient birds.

Flaco's Laws introduced to New York City Council in honor of beloved Central Park owl

Flaco’s Laws introduced to New York City Council in honor of beloved Central Park owl© Provided by ABC 7 New York. This photo provided by David Lei shows Flaco the owl, April 28, 2023, in New York. Courtesy David Lei via AP

Flaco was freed from his cage at the Central Park Zoo in early 2023 by a vandal who breached a waist-high fence and cut a hole through a steel mesh cage. The owl had arrived at the zoo as a fledgling 13 years earlier.

Zoo officials and his fans were at first worried about his survival, but he soon proved adept at catching rats and other prey. The zoo later suspended efforts to re-capture him after failed attempts.

Flaco’s death was a heartbreaking end for the birders who documented his daily movements and the legions of admirers who followed along, as people posted photos and videos of the majestic owl with a nearly 6-foot wingspan perched on tree branches, fence posts, fire escapes and water towers – as well as his hours of hooting.

In addition to the package of bills introduced Thursday, a tattoo parlor in Brooklyn offered discounted tattoos of the beloved bird from noon to 7 p.m. They were offered at East River Tattoo in Greenpoint and cost $150 with tips donated to the Wild Bird Fund.

“It’s something that people connect to on a personal level and just their own struggle to exist in a challenging place to live,” said tattoo artist Duke Riley.

The package of bills will eventually go through the Sanitation Committee before going to a committee and then will be voted on.

Efforts are also underway to put a statue of Flaco in Central Park.

(The Associated Press contributed to this report.)