Buying out stabilized renters in NYC
I'm interested big buying a partially vacant stabilized 6-unit building in Manhattan. How much are rent-controlled renters generally accepting as buyouts to vacate the apartments these days?
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Hi Stephen,
It is getting a bit more complicated these days - the Housing Stability and Tenant Protection Act of 2019 removed many incentives for buy-outs, but sometimes being creative with the solution is worth checking out in addition to buyouts. I had the good fortune to deal in two 2-unit buyouts in a multifamily building in Brooklyn in 2016, and had one that didn't work (SRO Building in Harlem). It really depends on what the upside of your project is, and then evaluate the risk with the tenants.