Management company taken to task

From the Queens Tribune:

Residents from across seven Flushing buildings gathered at St. George’s Episcopal Church to voice concerns over recent actions by New Jersey-based development company Treetop Development, which owns the buildings in question. The corporation has been exploiting loopholes to raise rents and drive low-income residents out of their apartments in order to begin gentrifying the area, the residents argued.

The meeting was organized by the Flushing Rezoning Community Alliance. Faith in New York, an interfaith organization, was also in attendance. Andrew Hausermann, the director of Organizing for Faith in New York, explained that the organization had heard many complaints from residents in the seven buildings, which Treetop purchased six months ago.

“This company, Treetop, has a bad history,” Hausermann said to the hundred or so residents in attendance. “They have a history of buying rent-stabilized units in neighborhoods that they say are soon upcoming neighborhoods, might be gentrifying neighborhoods, and they’ll buy these rent-stabilized buildings, run out the low-income tenants and then sell the buildings for a big profit.”

Hausermann also said that the company was accused of similar practices in Williamsburg and Harlem.

Among the chief complaints raised by residents is what they say is a loophole in New York State law that allows for permanent rent increases in rent-stabilized units. Landlords can implement these raises to fund construction projects called major capital improvements. These MCI increases are problematic, Hausermann explained, because even after the project is funded, the rent increase can remain in place, which could drive low-income tenants out. When the rent reaches a certain threshold, it eliminates the rent-stabilization designation, Hausermann said. These concerns have been raised in the wake of a high level of construction going on around the buildings.

One building in question, 132-40 Sanford Ave., received a stop-work order after Councilmember Peter Koo (D-Flushing) voiced concerns raised by constituents. A June stop-work order complaint on the Department of Buildings website said that workers were “removing asbestos without protection” and cited debris in the hallway. Another complaint from July said that work resumed at the site despite the stop-work order.

Huge Rego Park apartment building sold again

From Crains:

Teaneck, N.J.-based Treetop Development, which three years ago began snapping up residential buildings across the Hudson River in northern Manhattan, has now jumped across a second river, the East.

The developer has acquired Saxon Hall, a 16-story rental apartment building located at 62-60 99th Street in Rego Park, Queens, for $85.25 million.

The purchase is Treetop's first in the borough. It's all part of a strategy to acquire "rental properties in emerging and undervalued New York City neighborhoods," according to a press release.

"Some of the strengths Queens has over Manhattan and Brooklyn is that tenants can get a significantly cheaper apartment, oftentimes a larger apartment, in a nicer building," said Adam Mermelstein, general partner at Treetop. "There's strong value in Queens."

Saxon Hall currently has 417 apartments ranging in size from studios to three-bedrooms and penthouse units, all of which have balconies.

It was last sold in 2008 for $74M.