The impact of the 2019 rent law is profoundly affecting landlords, causing values of rent-stabilized properties to plummet. A legal dispute has arisen among siblings Michael and Ed Ostad and their younger brother Steve over a partnership concerning several properties, mainly rent-stabilized. They are seeking to dissolve this partnership to liquidate assets tied to significant debt. The legal clash highlights the strain the rent law has placed on property values, which are now reported to be less than the loan amounts and are indicative of wider struggles among real estate owners in the city.
The elder Ostads claim the buildings' values have slipped below the loan amounts, a common complaint among owners since the rent law froze building revenues.
The brothers' plan is to liquidate the assets, which collateralize $80 million in debt, according to the suit, but younger brother Steve's refusal to cooperate is a roadblock.
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