Rockrose Development is selling its 324-unit rental building 22 River Terrace, and the Broadsheet reports that a new owner, who could pay upwards of $100 million for the building, would likely want to convert the building into condos. The Broadsheet notes that over the last decade, this same scenario has played out at a couple different downtown buildings, and things have not gone smoothly. Rockrose sold 333 Rector Place in 2006 to a developer who converted the building and reneged on his promises to do so under a "non-eviction plan." On top of forcing all the tenants to move out, the developer hit financial troubles with the 2008 crash and lenders took over the building.
Related Companies sold 225 Rector Place to Yair Levy in 2005, which turned into a veritable shitshow. Levy tried to evict rent-regulated tenants, defaulted on his mortgage, and was accused by the NYS Attorney General of misappropriating more than $7 million, which resulted in him being banned from the New York real estate world for life. Related ended up buying the building back and completing the conversion (which seems to have wholly put its troubles in the past). The market today is a different beast than it was during the mid-aughts and the crash, so there's no reason to think that a possible conversion of 22 River Terrace will end badly, but the current tenants probably don't have a very rosy outlook.
· Rental Discretion Is Advised [Broadsheet]
Loading comments...