From the Real Deal:
One luxury condominium developer has found a way to keep the cash flowing even if units aren't selling -- furnish the apartments and rent them as hotel units.
Cardinal Investments New York has been renting unsold apartments in at least two of its luxury condo projects -- M127 at 127 Madison Avenue in Murray Hill and 17 Orchard Street at Canal Street on the Lower East Side -- as fully furnished short- and extended-stay hotel suites, according to Trevor Stahelski, a partner at Cardinal.
Stahelski admitted the arrangement isn't necessarily legal under city zoning laws. Inquiries from The Real Deal have prompted an investigation of the Cardinal properties by the mayor's Office of Special Enforcement, which handles illegal hotel usage, said Jason Post, a spokesperson for the agency.