The last time C-III Capital Partners did a 421-a deal [a NewYork City property tax exemption for new multifamily buildings] itwas in Long Island City before the recent rent regulations wentinto place. Since then, the math for a project to pencil has gottenharder, said Paul Hughson, executive managing director of the realestate investment company.
To do 421-a, you generally pick where 70% of the units are freemarket and 30% are affordable, he explained. Now though, "in orderto be out from under the rent stabilization law, you need to have$2,775 [per month] or greater rents."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
