All Forum Posts by: Jordan Flescher

@Isadore Nelson https://rentguidelinesboard.cityofnewyork.us/wp-content/uploads/2023/05/2023-Changes-Report.pdf pages 6 through 8 here touch upon  it a little bit. 

Basically you will have to renovate at least 75% of the building in order to deregulate it. 

If  it were me, I would begin with a cost study to see what the potential benefits are (I.e. what is the difference between market rent and current rent) so I can create a pro forma budget. From there you will know what you are able to offer tenants to vacate. You should budget for at least 3x that number to account for any holdout tenants (your risk tolerance may vary, but educate yourself on others experiences in this endeavor). Consult with an architect/zoning expert to plan and file all the necessary docs, and only once all of that has been confirmed, preferably as of right, should you begin to offer your tenants buyouts. 

My guess is that the cost and timeline required for all of this will not be worth it, but if you are interested, a cost study should not be particularly laborious. 

@Dave Foster these sound like sage words of wisdom! Thanks for distilling it so well. 

@Jordan Flescher@Jaycee Greene coming from hospitality, I'm intimately familiar with how design and "branding" play a role in demand of a product 😉

@Jaycee Greene correct - their values are derived very differently

@Jordan Flescher@Jaycee Greene

$150/sq is on the higher end of construction for Brookhaven duplexes (there are not as many there as SFR).

Would probably aim 3000-3500 sq ft total because the comps in Brookhaven for duplexes aren't very plentiful. Rents looking around $2200-$2600 for a 3 bed/2 bath. 

Luxury single family in Brookhaven would be a little more lucrative and better defined, with construction costs around $150-$200/sqft for a 3 bed/2 bath on a 1400sq ft build, 0.3acre lot with easy comps in the $1.5m-2.3m range 

Pay everyone to leave... 🤷

Will include here; getting those tenants on a lease is crucial. In NYC you cannot even begin the eviction process without a lease.

Hey Ricky, what part of NYC are you based? Glad to grab a coffee. 

@Jaycee Greene Entirely depends on site, finishes, client specs, ground up vs reno, etc. Can come in anywhere from $70/sqft - $200+/sqft.