Roosevelt Landings sale tops $1.1 billion as L+M Fund Management takes over the lease for the largest of the original WIRE buildings. With RIOC’s approval, the deal closes on Wednesday, October 23rd.
A return to affordability is in the works, and maybe a name change too. A return to “Eastwood” is possible, and it will increase affordable options.
As renters aided by government subsidies left the buildings, Eastwood’s open market ate up the vacant apartments. It’s now at 45%, but that’s changing.
L+M promises that “67% of the residential units of Roosevelt Landings will be preserved at rents, set between 80% – 150% of AMI for newly rented units. “
And not just that, but future rent increases for market rate apartments are “tied to Rent Guideline Board increases until such tenant vacates the unit.”
That stems the ten-year tide of skyrocketing increases.
The Roosevelt Landings sale tops $1.1 billion, but what’s in it for RIOC?
The price is $1,160,000,000 to transfer interest on the Eastwood lease to L+M. A formula yields a $1,788,429.73 transaction payment to RIOC.
A key piece making this possible is that Eastwood property taxes freeze at $6,409,969. That’s the current rate, and it stays for the lifetime of the lease.
Happening fast, the $1.16 billion lease deal closes on Wednesday, this week, but L+M is already on the case.
Already aware of roof and exterior repairs, they plan to meet with tenants and learn more. But L+M wants stability. Public spaces are up for review, but “We want everyone to stay.”
That’s good news for the Senior Center and others contributing cultural benefits to Roosevelt Island.
Related news for Roosevelt Island…
Deep dive behind the $1.1 billion Eastwood deal…
We reported earlier…
The inspiration behind a move from market rate to affordability, opposite current trends, is the dusting off of a “1960s-era city tax exemption program,” according to a more responsible report in the Wall Street Journal.
Article XI, according to the Journal, “allows the city to negotiate individual deals with property owners, where the city seeks to balance the cost of lost tax revenue with the benefit of rents set at no more than 30% of median income for renter households who meet specific income limits.”
But while that applies to the other four complexes in the sale, it does not apply to Roosevelt Landings because it falls under State authority.