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March 11, 2014- In an email sent to the residents of 22 River Terrace, the new owners of the building who are converting it from rental to condo refuted the news reports that they are unfairly, or even illegally, evicting renters to maximize profits.
CREP River Terrace Holdings, LLC
co 22 River Terrace Management Office
22 River Terrace
New York, NY 10282
Dear Residents of 22 River Terrace,
As you are aware on December 30, 2013 CREP River Terrace Holdings, LLC (“Owner”), as Owner of 22 River Terrace, submitted a first draft of an offering plan to the New York State Attorney General’s office to permit the sale of condominium units at 22 River Terrace. This draft offering plan, known as a “red herring“, was mailed to the residents of each apartment in early January. While subject to change, the red herring outlines the basic terms of the proposed conversion, along with information regarding the rights and responsibilities of owner and tenants as required to be disclosed by the Attorney General’s office.
There is, unfortunately, a good deal of misinformation presently being circulated regarding the proposed conversion, and we would like to take this opportunity to clarify certain key points.
First, at present nothing is or can be offered for sale.
The sale of condominium units at 22 River Terrace cannot occur until a final offering plan is accepted for filing by the Attorney General’s office. We are currently in the first stage of this review process. The review process is a lengthy one that may span many, many months, and we have no information from the Attorney General’s office as to when this process will conclude. No negotiations or commitments relating to the future sale of condominiums are permitted prior to the final offering plan being accepted by the Attorney General’s office.
Second, until such time as the offering plan accepted far filing, no resident has a right m purchase their apartment
Tenants with bona fide leases who are in occupancy at the time the offering plan is accepted for filing (“Qualifying Tenants”) will be provide with a 90-day Window to exercise their option to purchase their unit at the price listed in the final offering plan at the time the offering plan is accepted for filing. Note that this price may be different from that included in the red herring,
Third, no Tenant has an automatic right to a discounted or “insider price”.
An offering plan sponsor is not obligated to provide a discounted price to tenants, although at present the Owner is voluntarily proposing to extend a discount to Qualified Tenants in the event the offering plan is accepted for filing. The proposed discount has been included in the red herring.
Finally, until sometime after offering plan is accepted for filing, no Tenant has a right to a lease renewal.
The submission of the red herring to the Attorney General’s office does not, by itself, alter the fundamental relationship between an owner and tenant. Just as before, Owner is not obligated to renew a market-rate tenants lease, We are, however, obligated to honor the terms of an existing lease. in some instances we have elected to exercise the 90-day “early expiration” right agreed to by tenants in certain leases and/or lease renewals This is permitted by law.
An individual purporting to represent a tenant group has recently suggested that Owner is “warehousing” units. This is not correct. The concept of “warehousing” is related to the occupancy of a rental building prior to submission of the red herring and is irrelevant to whether we now elect to enter into, renew, or terminate a lease. Owner’s past actions to not renew an expiring lease or in exercise its options under an existing lease are fully within Owner’s legal rights“
The terms of the proposed offering, While subject to change, are included in the red herring. Please refer to the red herring for more information. At such time as an offering plan has been accepted for filing by the Attorney General’s office, the final offering plan Will he provided to tenants.
We understand that the non-renewal of a lease can be both disruptive and frustrating and Owner is committed to working with tenants faced with making a transition. To the extent that you would like to review your lease options, including the early expiration of your lease should you find an alternative lease with another building, please contact Maya Kadouri of Douglas Elliman at 212.706.8221.
CREP River Terrace Holdings, LLC
Owner and Landlord
By: John Tishjian, authorized representative