At 461 Dean, discounts on market-rate units push net effective rent below new NYC "affordable" levels
It's not surprising, given the pandemic and recession, that discounts have returned to market-rate rental units at 461 Dean, the residential tower--50% affordable, 50% market-rate--at the southwest flank of the Barclays Center.
It's the only tower in Atlantic Yards/Pacific Park built via modular construction.
Indeed, given short-term discounts that lower the net effective rent on a 12-month lease (while likely re-setting upon lease renewal), studio and one-bedroom apartments are available at well below the middle-income "affordable" rents set in city-financed or -approved properties.
Consider unit 9B, a studio which recently had its net effective rent listed at $2,138, while the gross rent is $2,700 per month. That's $32,400/year. Divide that sum by $2,138, and the result is more than 15: so that's three free months.
Low security deposit
Beyond that, the building--owned by Principal Global Investors and managed by Greystar--now allows a $1,000 security deposit for qualified applicants who apply within 24 hours of their visit.
That's well below the standard, which is typically at least one month.
A cheaper one-bedroom
Or consider unit 6N, a one-bedroom which recently had its net effective rent listed at $2,917, while the gross rent is $3,865 per month. That's $46,380/year.
Divide that sum by $2,917, and the result is 15.9, so that suggests nearly four free months.
To be fair, there are other studios and one-bedrooms in the building which, despite discounts, have higher net effective rents. And, despite discounts, I don't think the two-bedroom market-rate units have hit "affordable" territory.
What's affordable?
According to the city's current page for affordable housing, an affordable studio renting to someone who fits an Area Median Income (AMI) of 130% costs $2,155, while someone qualifying under an AMI of 165% pays $2,753.
Similarly, an affordable one-bedroom renting to someone who fits an AMI of 130% costs $2,700, while someone qualifying under an AMI of 165% pays $3,446.
That suggests that, in the current market, affordable units may not be that attractive--though they do offer rent increases based on rent stabilization, as well as tenure of occupancy.
Note that, when the building first sought affordable tenants in 2017, according to the housing lottery ad, the most expensive affordable studios rented for $2,121, and the most expensive one-bedrooms rented for $2,663.
Those figures have obviously risen, because of modest annual increases, but I don't think the base re-set to reach current figures.
Note that, under the Affordable New York program, it's likely most or all of the affordable units in the next few Atlantic Yards/Pacific Park buildings will be middle-income units renting at 130% of AMI. (There's no provision for 165% of AMI, but there is room for lower-income units.)
It's the only tower in Atlantic Yards/Pacific Park built via modular construction.
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| Unit 9B, from StreetEasy |
Consider unit 9B, a studio which recently had its net effective rent listed at $2,138, while the gross rent is $2,700 per month. That's $32,400/year. Divide that sum by $2,138, and the result is more than 15: so that's three free months.
Low security deposit
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| Unit 6N, from StreetEasy |
That's well below the standard, which is typically at least one month.
A cheaper one-bedroom
Or consider unit 6N, a one-bedroom which recently had its net effective rent listed at $2,917, while the gross rent is $3,865 per month. That's $46,380/year.
Divide that sum by $2,917, and the result is 15.9, so that suggests nearly four free months.
To be fair, there are other studios and one-bedrooms in the building which, despite discounts, have higher net effective rents. And, despite discounts, I don't think the two-bedroom market-rate units have hit "affordable" territory.
What's affordable?
According to the city's current page for affordable housing, an affordable studio renting to someone who fits an Area Median Income (AMI) of 130% costs $2,155, while someone qualifying under an AMI of 165% pays $2,753.
Similarly, an affordable one-bedroom renting to someone who fits an AMI of 130% costs $2,700, while someone qualifying under an AMI of 165% pays $3,446.
That suggests that, in the current market, affordable units may not be that attractive--though they do offer rent increases based on rent stabilization, as well as tenure of occupancy.
Note that, when the building first sought affordable tenants in 2017, according to the housing lottery ad, the most expensive affordable studios rented for $2,121, and the most expensive one-bedrooms rented for $2,663.
Those figures have obviously risen, because of modest annual increases, but I don't think the base re-set to reach current figures.
Note that, under the Affordable New York program, it's likely most or all of the affordable units in the next few Atlantic Yards/Pacific Park buildings will be middle-income units renting at 130% of AMI. (There's no provision for 165% of AMI, but there is room for lower-income units.)
It's called greed, rents still high, they have to lower the rent still for high income earners, should of had more lowincome earners, for some reason people think if you are lowincome its criminal or we dont pay taxes, more lowincome units definitely needed
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