Panelists at Ariel Property Advisors’ “Bronx State of Mind” forum lamented the city’s new rent regulations, calling them “irresponsible and one-sided.”
Mark Stagg, president at Stagg Group, said his company was taking a “wait-and-see” approach to the new rules while Radame Perez, COO at Mastermind, Ltd. predicted, “The changes will displace small real estate owners and keep them out of the market.”
The two were joined the panel by Rick Gropper, co-principal at Camber Realty Group, who provided insight on their decision-making process for recent projects.
All three panelists voiced their displeasure with the new rent regulation laws. Some of the more contentious parts of the law include: 1) the repeal of the “vacancy bonus” that allowed property owners to raise rents as much as 20% each time a unit is vacated and 2) reforms to rent increases for Major Capital Improvements (MCIs) and Individual Capital Improvements. (IAIs).
As a result of the new laws, Mr. Gropper said “the market will likely experience a significant correction and reset.”
The networking breakfast was jointly sponsored by the Bronx-Manhattan North Association of Realtors (BMNAR) and featured a Shimon Shkury, president of Ariel Property Advisors, opened the event at The Japan Society on East 47th Street
Jason M. Gold, a director at Ariel Property Advisors with nearly a decade of experience selling properties in The Bronx, moderated the spirited and insightful conversation, with questions focused on recent trends, Opportunity Zones, and the overall state of the commercial real estate market in the borough.