NY is proposing to make changes to rent regulations that would make it vastly more complicated to execute the deregulation strategies that are being undertaken by several private equity groups. The most notable includes the Tishman/Blackrock Peter Cooper Village/Stuyvesant Town (PCV/ST) and Stellar Management's Riverton, but the list doesn't end there.
Deal Junkie and Bloomberg did a fine job summarizing the changes. The largest new hurdle seems to be the increase in the destabilization threshhold from $2,000 to $2,700. Further, one year ago in March 2007, NY put into place legislation that made it demonstrably easier to sue your landlord if he repeatedly, and unsucessfully, attempted to deregulate your apartment based on false accusations.
Can't say that it is easy to feel sorry for the PE groups though. Some others include.
Savoy Park ($210mm, CSMC 2007-C1) sponsored by Vantage and Apollo
Meyberry House ($72.4mm, CSMC 2007-C4) sponsored by J.Goldberg and A.Cohen.
New York City Apt. Port. ($195mm, MSC 2007-IQ14) - sponsored by Insureprofit, which filed for bankrupcty last year.
Broadway Portfolio ($70mm, CSMC 2007-C2) - Vantage and Apollo
Esquire Portfolio ($31mm, CSMC 2007-C4) - Vantage and Apollo
Villas Parkmed ($300mm, CD 2006-CD2 - Stellar and Rockpoint are the same sponsors athat are involved in Riverton; This property is located in California, but is the same type of story.
The Axton ($21mm, MSC 2007-HQ12)