Wednesday, February 4, 2009

LeFraks abandon ship

From the Real Deal:

New York hasn't heard much from the LeFraks -- one of the city's true real estate dynasties -- in a while, and there's a reason.

Unlike a lot of developers now hawking $1 million apartments or struggling to finance half-completed projects, the LeFraks got out of the condo business just in time, instead focusing on rentals and buying up commercial properties in Los Angeles, Richard LeFrak, chairman and chief executive of the LeFrak Organization, told The Real Deal in a discussion about the market, for a cover story in the February issue.

The LeFraks, who operate a family business stretching back five generations, will soon celebrate the grand opening of the new Westin Jersey City in their Newport development, which has some 880 condos and 3,480 rental apartments, on the waterfront in Jersey City. A new rental tower, the Aquablu, is slated for occupancy this spring. Their most recent condo project, the sold-out Shore Condominium Residences at Newport, went on the market in February 2008, months before New York began feeling the effects of the nationwide housing downturn.

But once the Aquablu is completed, LeFrak will have no new construction projects underway in the New York City area.


Anonymous said...

More lies from Queens Crap; what else is new??

The Crapper title misleadingly says "Lefraks abandon ship" when the article says the EXACT OPPOSITE.

In fact, the Lefraks stopped building new buildings in the area three years ago, not because of a bad economy, but actually because of a good economy! They put everything on hold because land prices were too high because of their business model.

They responded by just holding on to all their NYC area sites, because they usually only build rentals, and rentals are not as profitable as condos at the peak of an economic cycle.

And they will develop these sites as soon as credit markets return, as seen in the last part of the article.

You don't build rentals as prices peak; you build condos, which is why the LeFraks were not in the real estate game these last three years.

Anonymous said...

Of course the article doesn't mentiom how their tenants are being harrassed out their apartments wirh frivious law suits, lack of repairs, no heat, etc, etc. Also most of their buildings not only have roaches, mice and rats but now have bed bugs. The bed bugs are not their fault or the tenants as there is a epidemic. What is LeFraks fault is the improper extermination, blaming it on the tenants and even charging each affected tenant for part of the extermination. Also any tenant who reports the bed bugs to the Board of Health and/or HPD immediatly gets a frivious retaliating law suit.

Anonymous said...

I understand the leFrak Org. is one of the largest rental landlords - it's their bread and butter and were probably first at the Mitchell Lama table to fund building the massive building in Rego Park.

They have diversified geographically and still think big.

Queens Crapper said...

What part of the last line did you not understand number 1?

But once the Aquablu is completed, LeFrak will have no new construction projects underway in the New York City area.

Abandoning the NYC ship. Get it?

Anonymous said...

Wow that first commenter sure got his panties in a bunch over nothing. Yet, I see similar comments ("more lies from Queens Crap!"), presumably from him, on this site almost every day. He must be in real estate and is shitting his pants. I'll be happy to send him a complimentary package of Depends if he wants to leave his name.

Anonymous said...

When old Sam was the leader of the family business, their name was Lefrak.

Now they've French-ified

Bon jour Monsieur Le Frak!

They're still a bunch of thieving harassing bastards anyway you spell it!

Anonymous said...

Hey angry tenant? If you don't like a landlord, why do you stay in his building? Just move next door.

Anonymous said...

If you are referring to Lefrak City it never was Mithchell Lama. His buildings in Queens were all rent stablized (I say were because they are rapidly pushing tenants out). They are doing the same as Vantage has been doing.

Anonymous said...

Why don't we move?

Please try to get in touch with the World. Affordable housing is non-exsistant.

Anonymous said...

Real estate brokers
are just property pimps...
despite any fancy airs they put on!

Every real pimp who's a purveyor
of flesh knows that it's
looks, looks, looks.

(Just like in real estate it's location, location, location...
features and amenities that sell his product).

Each one of his hookers have to be top quality otherwise his clients pay less for them.

The same goes for shoddily built
ersatz luxury condos and cheesy rentals!

The broker now has to hustle
(like a whore himself)
to close a deal these days at a much lower commission!

you legend-in-you-own-mind, die-hard, boastful blow-hards.

You'll be eating tuna casserole along with the rest of us sooner than you think!

Anonymous said...

It was a few years ago when someone from the Rent Stabilization Board (Landlod Org.) testified that Lefrak was no longer building in NY because there were too many Building Codes.

I guess now there are too many laws in the whole of the USA.

Snake Plissskin said...

More lies from Queens Crap; what else is new??

After enjoying the benefits of the lapdog press where buiders press releases are treated as news, its nice to see 'em squirm.

Newport in NJ is the byline for souless anonymous architecture.

LIC will look like Newport after they 'clense' the community of its residents for Tower People.

Anonymous said...

As the economy worsens
and even the landlords are finally feeling the pinch, they'll let their properties slide a bit.

When the buildings deteriorate enough they'll hit condo owners with higher monthly "maintenance" charges to fix things up.

What...did you think all that money for repairs was going to come out of their pockets?

You'd better move back home
and live with your mamma!

Anonymous said...

Someone doesn't know the difference between a condo and a rental.

Anonymous said...

By the time
"credit markets return"
you'll have been long out of your current job fella...which I suspect is real estate sales agent!

Save that kind of BS for your wife
(or girlfriend) who'll likely be leaving you shortly after the finance company repos your Lexus and you
are forced to hock your Rolex to pay for a new monthly Metrocard!

Maspethian said...

It always pissed me off that the around the holidays their building are adorned with lights that say "Happy Channukah" and "Happy Holidays", even though, I would guess, about 95% of the residents celebrate Christmas (not mentioned) and less than 5% celebrate Channukah. Not a major issue, but a symbolic slight to the people that pay them rent.

Maspethian said...

Anon 1 is paid $250/hr to continuously Google blog "LeFrak" and RESPOND WHEN NECESSARY.

His responses are pathetic. I guess he'll refund that retainer now.

Anonymous said...

I know the difference between a condo and a fool!

I own and have "satisfied" the mortgage on my own home
but used to rent.

I never liked the idea of a condo.
With a house I have FULL CONTROL
over my expenditures and can triage repairs, etc. to my heart's delight... not the landlord's.

The landlords of rental buildings,
however, are usually the worst
of the comparison!

They often maintain their buildings from so-so to minimal standards
and the worst of them are out in out slumlords.

At least with a condo you can always sell something...though you'll probably take a little pummeling in today's market.

Some bitter rental (or sales) agent
you must be!

Wattsa more super deluxe
lattes at Starbucks?
Have to brown bag it with a Thermos full of coffee or use instant at the office?

P.S. old sport...
assuming you bought your condo for cash isn't the often exorbitant monthly maintenance fee you pay...uh...a sort of substitute
R-E-N-T ?

Anonymous said...

Le Frak or Le of the same!

Anonymous said...

No, I am not a "bitter rental agent" or a "fool". I am a Lefrak tenant trying to tell you that they are slum landlords with a well known and well earned reputation.

Anonymous said...

and yet, you continue to remain a Lefrak tenant. Amazing.

You must be a glutton for self imposed punishment. There are lots of other landlords in the city.

Why wouldn't you pick up your futon and try one out?

Anonymous said...

Because tenant harassment is illegal and they shouldn't have to? Whether you agree with rent regulations or not, the LeFraks knew what they were getting into when they agreed to take on rent stabilized tenants.

Anonymous said...

Your compassion an understanding of people that have less then you is overwhelming. Move if I could afford triple the rent. Forgive us for sll not being rich.

Anonymous said...

Yawn...yeah...I believe you
Lefrak tenant...ho hum!

Once upon a time........!

Anonymous said...

"Yawn, Yeah.......Ho Hum"

At last I have found the man of my dreams. An equel opportunity hater.

If you're married let me know when your poor wife ends it.

Anonymous said...

you might consider Prozac.
It's available generically!

Anonymous said...

I don't live in a Lefrak building so let me try to explain to the kind gentleman why tenants, Don't, "Just Move." There is a new invention called, a "credit check." If you don't make enough money to move into one of the new market-rate rentals you are politely invited to move underneath the 59th Street bridge. Many respectable secretaries, waitresses, civil servants, entry-level workers and others are paid poverty-level wages, yet their work fuels the lifestyles of others. Perhaps a serious-enough depression ruining enough high-income individuals will result in an attitude adjustment.