A Picture is Worth…$133 Million?

One of the most overlooked aspects of the foreclosure process is the utter neglect that already-distressed buildings experience. There are three layers of neglect at play: when landlords and banks saddle buildings with mortgages that can’t be supported by existing rent rolls, landlords don’t have money to pay for maintenance; during foreclosure, landlords have little incentive to maintain properties, and by the time a receiver has been appointed, buildings are so distressed that receivers – with no equity or long term interest in the property – have limited ability to make positive changes in upkeep; and finally, predatory equity actors target buildings for purchase that are usually already in pretty bad shape — and maybe have already gone through a couple rounds of predatory equity already.

In the Three Borough Pool, there is growing public pressure for LNR to cut ties with the four predatory equity investors who overleveraged the buildings and are now in default and foreclosure. Tenants and advocates are organizing and demanding that LNR sell the 42 buildings to a responsible actor with the experience necessary to rehabilitate these 1600 units while keeping them affordable for current residents. The four private equity companies are are looking for new investors to refinance their $133 million loan — and to do so, they need to demonstrate that they are responsible enough landlords to get that kind of money.

But this is how tenants are living. Repairs barely scratch the surface, and tenants are suffering every day. Do Vantage Properties, Normandy Real Estate, Westbrook Partners, and David Kramer deserve a second chance?

1229 Franklin, E4, hole in wall

1229 Franklin Avenue, Bronx

1229 Franklin, E4, broken window

1229 Franklin Avenue, Bronx

 ceiling, apt 2A

1270 Ocean Avenue, Brooklyn

IMG_6986

269 East 194th Street, Bronx

265 E. 194th 2D 2.13.14

265 East 194th Street, Bronx

269 E. 194th 4D 1.8.14

269 East 194th Street, Bronx

ceiling light

709-713 Fairmount Place, Bronx

floor

709-713 Fairmount Place, Bronx

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