Market Overview Campaign by Ariel Property Advisors
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Weekly Market Watch
February 16, 2020 | Volume 14 | Newsletter 7
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Dear Friends:

This past week has been full of important legislation news including an amendment to the "good cause" eviction bill that involves rent increases of either 3 percent or 150 percent of the Consumer Price Index, whichever is higher. Furthermore, last week we reported that New York City banned rental commissions paid by tenants, but this week, a New York judge has placed a temporary hold on this piece of regulation. Other interesting news includes Gowanus residents' latest effort to halt a rezoning of their neighborhood, similar to the opposition faced at Lenox Terrace regarding its rezoning approval that we also mentioned last week.

Happy Presidents' Day from Ariel Property Advisors!


NYC MARKET REPORTS
OUR OBSERVATIONS FOR THE WEEK
Our take on newspaper articles
and happenings in the real estate arena throughout the past week

New York landlords' worst nightmare, the "good cause" eviction bill, is on the move, The Real Deal reported. State Sen. Julia Salazar's bill was amended Thursday to allow for a rent increase of 3 percent or 150 percent of the Consumer Price Index, whichever is higher - up from just 150 percent of CPI in its original form. Language forbidding evictions of tenants who are hit with "unconscionable" rent increases was also changed - to "unreasonable," which lawmakers preferred, according to supporters of the bill. The legislation will now head to the Senate judiciary committee, which is scheduled to meet next week.

Rental commissions are back, The Real Deal reported. A New York judge granted a temporary restraining order Monday afternoon, halting a Department of State guidance barring tenant-paid rental commissions from going into effect. The guidance, circulated Feb. 4, would have blocked tenants from paying rental commissions in cases where the landlord hired an agent to market the listing. But amid heavy backlash from rental brokers who said their livelihoods were at stake, the industry filed an Article 78 petition this morning in Albany.

Gowanus residents and activists held a press conference last week in the community's latest effort to steer a planned rezoning of their neighborhood, Real Estate Weekly reported. Weeks after the city announced it was in talks with developers to build high-rise housing instead of a park on a former gas plant at the corner of Smith and Fifth Streets, Gowanus Neighborhood Coalition for Justice (GCNJ) said the city needs to get its own houses in order first, demanding repairs be made to crumbling NYCHA housing stock. Residents at the event described a "public safety crisis" with units having no heat or extreme heat, leaking pipes and rodent infestations.

City Council Member Bill Perkins is opposing a large-scale expansion plan of the storied Lenox Terrace residential complex in Harlem - a decision likely to doom the proposal unless developers can change his mind, Politico reported. The Council's land use practices give him effective veto power over the plan, which is currently nearing the end of the city's public review process. "This project is not good for our community," Perkins said.

Beneath a massive blue whale at the American Museum of Natural History, Mayor Bill de Blasio unveiled proposals today for a citywide basement apartment legalization program, a tax on vacant storefronts, more low-income housing and payment plans for renter security deposits, Commercial Observer reported. The second-term mayor called the set of policy initiatives "a plan to save our city." "We have to save ourselves from the forces of greed," he continued. "We have to save ourselves from laws that no longer serve us."

 
 
Weekly Real Estate Article Roundup
(Please note certain articles require a subscription to be viewed)
Macro News

Report: Rent burden impacting more $75,000-a-year earners
RE Weekly - February 12, 2020

A year after HQ2 died, tech is alive and well in New York
Crain's NY - February 11, 2020

''Good cause'' by any other name: De Blasio calls for tenant protections
The Real Deal - February 10, 2020

US mortgage rates hit 3-year low
The Real Deal - February 10, 2020

City Council wants more oversight of ''ghost kitchens''
The Real Deal - February 7, 2020

Industry to sue over broker fee ban
RE Weekly - February 7, 2020


Neighborhood Related News

Lexin Capital puts Midtown South office building up for sale
The Real Deal - February 11, 2020

NY Botanical Gardens taps Douglaston to build Bronx housing
RE Weekly - February 11, 2020

Jeff Sutton deal in Brooklyn leads mid-market investment sales
The Real Deal - February 10, 2020

Check out Gary Barnett's ''Adult treehouse'' at One Manhattan Square
The Real Deal - February 9, 2020

Former Pork Warehouse in Meatpacking District Becomes Boutique Office and Retail
NY Observer - February 9, 2020

New Bronx Stadium Within Reach for Major League Soccer's NYC FC
Wall Street Journal - February 7, 2020


Market Activity

Savanna buying Garment District office building for $435M
The Real Deal - February 12, 2020

Largo buys another Williamsburg rental building for $32M
The Real Deal - February 11, 2020

Robert De Niro's Wildflower Studios closes on $72M Astoria site
The Real Deal - February 10, 2020

Spitzer, Related land $276M in financing for Hudson Yards senior housing project
The Real Deal - February 10, 2020

Rockrose plans a $100M resi tower in LIC
The Real Deal - February 10, 2020

Morgan Stanley Provides $78M CMBS Refi on Bronx Rental Portfolio
NY Observer - February 10, 2020

Barnett refis Diamond District assemblage with $340M loan
The Real Deal - February 7, 2020

 
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The Chanin Building - 122 East 42nd Street, Suite 2405
New York NY 10168
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