Judge Deals Death Blow To Owners Of Troubled Stuyvesant Town


Owners of Stuyvestant Town, the NYC residential mega-complex, just took a gut-shot from a judge who said they were unfairly charging market rents unfairly charging market rents while taking a tax break for renovations.

That’s right. In this city, where rent control and rent stabilisation are crucial to the housing code, landlords are always getting in trouble for improperly charging market rates.

This is horrible for current owners (a partnership of Tishman Speyer and BlackRock Realty), who are already though to have just a few months to live before a gigantic commercial real estate default. They now have to pay back tenants that were improperly charged market rents, and of course it means lower cash flows going forward.

Anyway, this news might tempt you to move to Stuy-Town, since your landlords have been chastened by the court.

Check out what living in the sprawling complex looks like >>

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.