Today in gentrification, the Times turns its attention to two Delancey Street walk-ups, 55 and 61 Delancey. It's a familiar story: building owner Madison Capital spent $20 million total on the buildings in 2008, after they'd last sold for $6 million in 2003. Now, to make a profit on the two properties, Madison needs to rent out the 45 apartments for a minimum of $6,500/month each. There's just one problem: the rent-stabilized tenants of most of the apartments pay about $1,000/month. Ruh-roh!
Enter buyout offers, which range from $10,000 to $60,000 per tenant. But many of the tenants aren't biting. Several have sued to force the owner to fix violations and stop demanding that tenants remove Lunar New Year signs. Still, things seem to be trending in the direction Madison wants: the rent-stabilized tenants who've taken buyouts have been replaced by NYU students and the post-college crowd at rents around $3,000/month. Next up: luxury condos?
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