L.A.’s Rent Cap
Commercial Observer
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America’s second-largest city has capped the amount of any rent increases on hundreds of thousands of regulated apartments. The move has already caused consternation in the real estate industry. Also for today: A nine-figure construction loan on the other side of the empire.
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— Tom Acitelli, Deputy Editor
Los Angeles Caps Possible Rent Increases for 624,000 Stabilized Apartments
Los Angeles lawmakers on Tuesday voted in favor of lowering the cap on the first allowable rent increase once the city’s COVID-era rent freeze on stabilized apartments expires at the end of January 2024. Officials also rejected calls to extend the freeze that has been in place since March 2020. The regulations affect approximately 624,000 units in 118,000 properties that fall under the Rent Stabilization Ordinance, which amounts to approximately three-quarters of the city’s multifamily stock. The L.A. City Council voted 10-2 to cap increases at 4 percent, or 6 percent for landlords who pay for tenants’ gas and electricity. Before Tuesday’s vote, the set cap on rent increases was going to be 7 percent, or up to 9 percent for landlords who pay for utilities.
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Chetrit Lands $235M Construction Loan for UES Condo Tower
Can I get an 'Amen'? In today’s financing environment, it’s warranted when closing a big financing. Chetrit Group just sealed a $235 million construction loan for its latest residential development on the Upper East Side, set to take over the site of the former St. John the Martyr church, Commercial Observer has learned. G4 Capital Partners provided the financing — which includes a mezzanine component — while Galaxy Capital’s Henry Bodek negotiated the debt on behalf of the borrower.
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