BROOKLYN NAVY YARD?We journey to the lands between Kent Aveune and the Brooklyn Bridge for this vital update. A tipster sends in the above photo and writes: "It seems that the new building for the NYPD Tow Pound at the Brooklyn Navy Yard is getting set to open soon. The building is on the opening montage for MTV's Real World Brooklyn. Building was designed by the architecture firm Spacesmith." Question: Is this the snazziest municipal impound lot building ever? [CurbedWire Inbox]
STUY TOWN?With analysts making a parlor game out of predicting when landlord Tishman Speyer will burn through its Stuyvesant Town/Peter Cooper Village cash reserve, one Curbed tipster floats the following intriguing angle: "Tishman Speyer's financial problems may be the key to unlocking its rent regulated units. The theory runs like this: As the New York Observer noted, a major burden for Tishman Speyer is its debt service (along with its high legal bills and vacancy rate). It would appear that unless it can rent more apartments at market rates, it will be difficult for it to continue to operate the complex. Thus, it must either reduce vacancy rates or raise regulated rents. Interestingly, under New York State Law, the Division of Housing and Community Renewal can authorize rent adjustments for owner "hardship."
Cutting to the chase, where operating expenses exceed 95% of gross rental income, the owner can apply for an upward adjustment of regulated rent if they have owned the building for three years. DHCR regulations provide that certain forms of “bona fida” debt service can be counted in the “operating costs” on which the increases depend.
Long story short, while Tishman Speyer finds itself over a barrel due to its mortgage obligations, it could be in a perfect position to obtain rent increases on its regulated units. Where rents are already close to the luxury deregulation cut off, this might allow Tishman to deregulate the apartments entirely. All of this would allow them to raise rents, possibly significantly, without having to force out existing tenants. Would I be cynical in suggesting that this was the plan all along?" Yes! But tantalizing, nonetheless. [CurbedWire]