Urban Standard Capital president Seth Weissman
One unintended consequence of New York’s 2019 rent law overhaul is that developers who want to switch new condo projects to rentals as a Plan B are required to sell the majority of those units to their tenants if the market improves in order to revert the project to condos.
Many developers say that makes those conversions virtually impossible, but one investor sees an emerging market in buying enough unsold units — at a nice discount — so developers can avoid falling under that new requirement.
“We’re telling a developer, what this does is it buys you time and it buys you optionality,” said Urban Standard Capital president Seth Weissman.