In a nutshell:
1) Hold onto the property for as long as possible, as CWCapital takes in huge fees for running the complex. ("CWCapital takes in $625,000 a month from overseeing the asset, with fees totaling $26 million since it first became involved in 2009.")
2) Keep on raising rents to make the purchase of the property more seductive to possible buyers. ("CWCapital believes it can raise rents on some units, boost the project's income and get a higher sales price, said the people familiar with its strategy. The company believes that process will stretch at least into 2014.") The churning of apartments for ever high rents means a concentration on temporary student housing and the packing in of students into divided rooms to attain the highest level of rent.
3) Sell when both numbers 1 & 2 have been suitably maximized, though a time limit is probably of import here.
So, where is affordable middle-class housing in all this? Well, it's being systematically eradicated, with Mayor Bloomberg not on our side at all, and our councilman, Dan Garodnick, offering up the same-old, same-old tenant purchase of the property plan that will, if actualized, also eradicate affordable middle-class housing, though probably on a less speedier track. (If you think we already have serious divisions in our community, wait till the introduction of condo owners comes into the mix.)
I know I've said this several times before, but let me repeat it: How is it legally possible for a landlord to divide up apartments with partitions/walls and have work orders state that there is NO change in occupancy? (Sample here.) How is it possible that the spirit of rent stabilization is being raped by the landlords, current and past? (What a cruel joke that the churning of PCVST apartments is happening to, yes, "rent stabilized" units.)
I just don't see why certain companies are not being sued, why certain people are not in jail, while the only ones left to suffer for the actions of these companies and individuals are the tenants themselves.
Shame on those who could have done something, but did nothing. And are still doing nothing.
Those who can't access the WSJ article can find it in a commentary on the TA Facebook page:
* * *
Meanwhile, this is how the luxurious Peter Cooper Village is looking these days. (Thanks to a reader for the photos.)