Upper East Side Update: $600 (Not a Typo) Rents in the Upper East Side

For those of you who live in New York City, or who have looked for apartments in New York City, you know that $600 per month will get you a broom closet in an outerborough with a communal bathroom.  Well, on the upper east side, between 64th and 65th street near York Avenue, residents typically pay $600 per month for an approximately 370 square foot apartment.  These 190 rent-stabilized and rent-controlled apartments have played a vital role for lower- and middle-class tenants for a very long time.

Stahl Real Estate (the owner), however, has applied to demolish the building and has submitted a hardship application to the Landmarks Preservation Commission.  They claim that the $600 per month rents do not generate sufficient economic return and, as such, they look to make way for a high-rise building.  Hardship status can be obtained if the building generates less than 6% in profit.  Opponents of Stahl’s plan, however, claim that the units could easily go for $1,500 per month and, therefore, the buildings could generate an annual return of 13%.  Interestingly, there is nothing on StreetEasy that shows anything less than $1,350 a month.  

Do you think Stahl should tear down the building and make way for a high-rise building?

Full story on the Wall Street Journal: