nyc, sf rent-raising landlords see profiteering strategy fail

From the NYT:

[J]ust like [Harlem's] Riverton and [East Manhattan's] Stuyvesant Town, the owners of [San Francisco's] Parkmerced sought to take advantage of a roaring market to replace rent-regulated residents with tenants able to pay far higher rates.

The owners in all three cases invested substantial sums in upgrading the aging buildings and renovating some apartments. But ultimately they failed to increase revenue enough to cover the debt payments on the properties, which were heavily leveraged. The recession did not help.

“It’s pretty interesting that they have all ended up in the same place,” said Andrew Florio, an analyst at Real Capital Analytics, a research firm. “People assumed they could boost revenues by kicking people out and raising rents.”