FAST FIVE: Bids For $260 Million Harlem Apartment Ensemble Disappear Overnight Thanks To New NY Legislation
In northern Manhattan, including Harlem, the drop led to a 61% fall in all commercial property transactions. The total of all commercial deals citywide is on pace to fall below 2,000 for the first time since 2011.
Adrian Mercado, chief information officer at B6 said: “Right now, it's a shot in the dark on the multifamily side.
People are speculating as to what buildings should be trading at.” Adelaide Polsinelli, a vice chair overseeing commercial property sales at Compass said: “One thing's for sure: They'll be trading for less than they would have before.
I told him to re-evaluate his reasons for selling, and see if he can hold it another five years.” In an recent email to clients, Polsinelli instead highlighted condos and market rate apartments that “are not negatively impacted by the new regulations and are worth your serious consideration.” Landlord groups are challenging the new rules in court. The law could have a sizeable impact on the city budget, as well.
Owners of income producing properties that lose value would pay less in taxes. Paul Massey, chief executive officer of B6 Real Estate concluded: “You're looking at a potentially $1.5 to $2 billion budget shortfall.