NYC Apartments Near Billionaires' Row Selling for $99K, But There's a Catch

NYC Apartments Near Billionaires' Row Selling for $99K, But There's a Catch

Residents of Carnegie House, a co-op located across from Billionaires' Row on 57th Street, are facing a difficult situation. While units in the building have sometimes sold for as low as $99,000, a looming ground lease renewal threatens to dramatically increase their monthly costs.

The owners of Carnegie House's ground lease, Rubin Schron and David Werner, are demanding to raise the building's annual rent from $4 million to $25 million. This drastic increase could bankrupt the co-op, forcing residents to move.

Many residents are retirees who rely on the building's proximity to top-tier hospitals and Broadway shows. They are concerned about being priced out of their homes and losing their equity.

The co-op board is fighting back, arguing that the landowners are trying to maximize their profits at the expense of residents. They've filed a lawsuit and are seeking support from politicians like State Senator Liz Krueger, who calls the situation a “clear hole” in New York's housing protection laws.

This situation is a warning for all co-op buildings with ground leases, which have become more common in the city since the 1980s. There are an estimated 65 to 100 co-ops across the city facing similar battles.

State lawmakers have proposed a bill to limit rent hikes for co-ops with ground leases, but the Real Estate Board of New York and landowners oppose it.