Sherwin Belkin was quoted in a recent article by The Real Deal titled, “Industry says ‘good cause’ hampers value-add projects, deters investment.”
The piece highlights the profound effects of New York City’s new “good cause eviction” law on both real estate investors and tenants. This law complicates the eviction process by mandating continuous lease renewals for tenants in good standing and generally capping rent increases for most market-rate apartments. Consequently, many investors are reassessing their commitments to the city, with some opting for more developer-friendly locales.
Mr. Belkin, the Co-Founding Partner of our firm, notes that the legislation provides tenants in market-rate apartments with significantly more security and bargaining power than before. This enhancement in tenant rights could result in larger financial buyouts required to vacate apartments. Mr. Belkin further points out that the increased leverage tenants now enjoy may lead to additional costs for landlords, particularly if they intend to repurpose their properties. The specific impact on property values and investment returns will depend on the individual strategies and decisions made by landlords.
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