Isaac Kassirer’s Emerald Equity is trying to save the rent stabilized, Dawnay Day portfolio. The firm is struggling to pay its debt obligations, and is looking for Article XI to save the day, TRD reported.
Backdrop: City officials and investors have dusted off a 1960s-era city tax-exemption program known as Article XI. The provision allows the city to negotiate individual deals with property owners, where the city seeks to balance the cost of lost tax revenue with the benefit of rents set at no more than 30 percent of median income for renter households who meet specific income limits.
Be Smart: Mack Real Estate has a nine-figure preferred equity stake in the portfolio.
Worth Noting: L+M Development Partners + Invesco Real Estate participated in the program for their $1.2 billion acquisition of the 2,800-unit portion of Brookfield’s Putnam portfolio.