Blackstone will rent out all vacant units in Stuyvesant Town and Peter Cooper Village

Mayor Bill de Blasio, Councilmember Dan Garodnick and Manhattan Borough President Gale Brewer along with Tenants Association members during a 2015 press conference to announce Blackstone’s purchase of Stuyvesant Town (Photo by Sabina Mollot)

By Maria Rocha-Buschel

The owner of Stuyvesant Town and Peter Cooper Village, has confirmed it will not purposely keep rent-regulated apartments vacant following criticism from local elected officials after reports that the company was doing so, Gothamist reported last Friday.

The position was a shift from earlier last week when the owner, Blackstone, would not commit to leasing all the regulated units, a strategy often referred to as “warehousing.” Gothamist also noted that the promise came after Mayor Bill de Blasio said that city officials would need to have “some serious conversations” with the company about the agreement it signed to keep the units affordable.

“We are renovating and leasing all vacant units, and we will continue to fulfill our commitment to voluntarily preserve 5,000 affordable apartments,” Blackstone spokesperson Jennifer Friedman told Town & Village, although she added that the company will still have to make “difficult choices” and “scale back certain investments” in light of the recent legislation.

Blackstone is now actively renting out all vacant units, although the company has spent the last several weeks working through how to conduct renovations, especially in recently-vacated apartments that have been occupied for decades.

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Landlords warn warehousing could be the new normal

Stuyvesant Town

By Sabina Mollot

Landlords are warning warehousing apartments could become the new normal.

The news comes as the city confirmed it is investigating reports that Stuyvesant Town landlord Blackstone is warehousing apartments at its 11,000-unit East Side complex.

A spokesperson for the Department of Housing, Preservation and Development, which oversees affording housing developments in the city, said it is “now looking into the matter.”

Blackstone insists it is still evaluating its options at Stuy Town, a sprawling complex it bought with Ivanhoe Cambridge for $5.3 billion in 2015. As part of the deal, the city provided $220 million in tax incentives in exchange for a commitment to keep 5,000 apartments in a “reduced rent program.”

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