After my article questioning Avanath's pursuit of $5,483 "affordable" 2-BRs at 38 Sixth & 535 Carlton, landlord now seeks legit rents, about $3,300, for such units.
OK, this is interesting.
In mid-August, I wrote (link) about landlord Avanath Capital's apparent effort to rent 2-BR apartments at 38 Sixth Ave. and 535 Carlton Ave., two "100% affordable" buildings within Atlantic Yards/Pacific Park, for $5,483.
That astounding figure prompted confusion on Reddit, with a poster calling them "absurdly priced."
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| Screenshot Aug. 10, from Apartments.com |
That astounding figure prompted confusion on Reddit, with a poster calling them "absurdly priced."
The advertisements on Apartments.com, which also reflected the rent levels at one point advertised on each building's website, also sought $4,274 for 1-BRs and even studios.
I couldn't figure out what was going on. Had Avanath, the California-based firm that bought both buildings in 2022, figured out how to legally game the rent-stabilization system?
Was it violating an agreement with the city, which seemingly required rents starting in 2017 at $3,206 (2-BRs) and $2,663 (1-BRs) to rise according to the modest increases from the Rent Guidelines Board?
I couldn't figure out what was going on. Had Avanath, the California-based firm that bought both buildings in 2022, figured out how to legally game the rent-stabilization system?
Was it violating an agreement with the city, which seemingly required rents starting in 2017 at $3,206 (2-BRs) and $2,663 (1-BRs) to rise according to the modest increases from the Rent Guidelines Board?
Or perhaps it was something else: sloppiness? an effort to impress investors?
I couldn't be sure, because the New York City Department of Housing Preservation and Development (HPD), given months to comment, would not do so.
And when I queried Avanath, as part of a wide-ranging article about 38 Sixth published in July by City Limits (Despite New Owner’s Promised Upgrades, ‘100% Affordable’ Atlantic Yards Building Endures Hot Water Outages, Broken Door, Even Bees), I didn't get answers to detailed questions.
"We are dedicated to remaining fully compliant with all federal, state, and local lease regulations," Avanath said. (The already-long article in City Limits excluded the rent issue, so I wrote about it separately.)
And when I queried Avanath, as part of a wide-ranging article about 38 Sixth published in July by City Limits (Despite New Owner’s Promised Upgrades, ‘100% Affordable’ Atlantic Yards Building Endures Hot Water Outages, Broken Door, Even Bees), I didn't get answers to detailed questions.
"We are dedicated to remaining fully compliant with all federal, state, and local lease regulations," Avanath said. (The already-long article in City Limits excluded the rent issue, so I wrote about it separately.)
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| Screenshot Sept. 9, from Apartments.com |
New rent levels
Recently, I checked Apartments.com for 38 Sixth and 535 Carlton and saw, to my surprise, that the buildings were now being advertised with legitimate rents, consonant with the modest increases expected.
So, what happened? Did Avanath read my article and have a "eureka" moment? Did HPD make a phone call?
I can't be certain. Neither Avanath nor HPD responded to my latest queries.
Untenable rents
Even if the rents sought earlier were somehow perceived as legitimate--based on newly elevated Area Median Income (AMI) figures, rather than those in 2017, when the buildings were leased--they were unrealistic.
It would be cheaper to get middle-income, rent-stabilized "affordable" units at other new buildings.
Moreover, the significant, and ongoing, tenant complaints (hot water, pests, etc.) at 38 Sixth Ave. may tamp down interest from potential renters, further disadvantaging units in the market.
Tenant complaints at 535 Carlton are fewer, but last month one resident complained the building didn't have hot water.
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| Screenshot Sept. 9, from Apartments.com |
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