Lone Star Funds: Stop the sale of 10 buildings in Inwood and Washington Heights
In April, 2012 Lone Star Funds filed for foreclosure against Vantage Properties - a notorious predatory landlord - on 16 buildings in Northern Manhattan. Despite tenants' wishes, Vantage has maintained control of 4 of them. 10 buildings are being marketed for $50 million - this price is too high, even higher than the current mortgage! This amount will force a new owner increase rents and reduce much needed services in order to make their mortgage payments.
These buildings are currently home to over 2,000 low income New Yorkers, many of whom have lived in their apartments for all of their lives. As rents continue to rise in New York City, tenants who are forced out of their homes often have no where to turn. It is important to fight gentrification and displacement that harms New York City neighborhoods.
Despite multiple requests from elected officials, advocates and city agencies, Lone Star Funds has refused to meet with tenants to discuss their plans for their homes. It is vital for the communities in Inwood and Washington Heights that we fight to STOP SPECULATION on low income housing and KEEP NORTHERN MANHATTAN AFFORDABLE.
- LSREFII - Clover Trust
- Brookfield Properties
Eric Weinberg, Esq.
- Vantage Properties
- AREA Property Partners
We are writing to you with deep concern over the behavior of Lone Star Funds in relation to 16 properties in Northern Manhattan. In April, 2012 LSREF II filed for foreclosure against Vantage Properties - a notorious predatory landlord. Despite tenants' wishes and the requests of elected officials, Lone Star Funds has worked out a deal with Vantage to allow the landlord to keep 4 of these buildings.
The other 10 buildings are currently marketed for $50,000,000. This price exceeds the existing debt by nearly $6M! It is evidenced by the foreclosure that current rental income in these properties does not support a $44M mortgage. It will not support $50M! Marketing these buildings at this price will force a new owner to increase rents and reduce services. This will lead to criminal displacement of low income tenants who have called these buildings and this neighborhood home for over 40 years.
As the note holder and the foreclosing lender in these properties, Lone Star Funds has the power to intervene, reduce debt and join tenants and elected officials in preserving this affordable housing.
We, concerned New Yorkers, call on Lone Star Funds to MEET with tenants and PREVENT the sale to any potential predatory landlords! These buildings are a vital resource to communities in Inwood and Washington Heights and must be preserved as affordable housing. Join us in preventing speculation and displacement in Northern Manhattan.
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