Stuy Town Tenants Sue Blackstone

$5.3 billion is what Blackstone and Ivanhoé Cambridge paid for Stuy Town in 2015. The deal with the city allowed them to deregulate and raise rents on 6,200 rent-regulated units beginning in July 2020. Tenants filed a lawsuit to block Blackstone from going forward with the rent hikes. As part of the original agreement, the city allowed Blackstone to cap rent increases at 5 percent each year, which is considerably more than the 1.5 percent outlined in last year’s new rent laws. The lawsuit argues that this conflict should require Blackstone to adjust the agreement in accordance with the new law. Once again you have new laws affecting old deals. A spokeswoman from Blackstone said they are “confident that the court will reaffirm” that ruling. “We could not be prouder of what we have done for the residents of Stuy Town,” she continued. “We voluntarily restricted 5,000 Stuy Town apartments as affordable, spent hundreds of millions of dollars in capital improvements across the property, and massively improved service levels—doubling resident satisfaction since our ownership.”

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