A nonprofit group is considering buying two adjacent apartment buildings in Hell's Kitchen formerly owned by a notorious slum landlord through a city revitalization program. The goal is to provide affordable housing, but funding and red tape could slow the process.
Community housing group This Land Is Ours says it is considering purchasing 438-440 W. 45th Street (between 9th and 10th Aves) using a city program recently funded by the City Council.
The two buildings were previously owned by Daniel Obeshalom, who topped New York City's list of worst landlords and is currently facing prison time in Rikers Island.
Maguire Capital, the current owner of the Obeshalom property, is seeking to sell the building for $5.25 million, according to a real estate listing from real estate firm Cushman & Wakefield. The building has 22 rent-stabilized units and eight market-rate units. “Nine apartments are vacant, presenting a wide range of potential opportunities for a new owner,” the listing states.
“This Land Is Ours” was able to purchase the building through the New York City Department of Housing Preservation and Development's (HPD) Neighborhood Pillars program, which aims to enable nonprofits and mission-driven organizations to “acquire and renovate unregulated and rent-stabilized housing” by providing low-interest loans and tax exemptions.
The program was replenished with $15 million in the City Council's FY25 budget passed last month, a far cry from the $250 million council members initially proposed.
Valerio Orselli, project director for This Land Is Ours, told Gothamist that his group has inspected the property and is discussing plans to buy it. It will probably take a year to raise the necessary funds, Orselli said.
In fact, it may be a while before many other nonprofits successfully take over buildings in Hell's Kitchen and elsewhere in the city: Neighborhood Pillars' website says that because of “limited staffing and a significant backlog of projects,” it could take “up to a year” before applicants are assigned a project manager.
Across Ninth Avenue, at 351-357 West 45th Street, a group of pre-war apartment buildings formerly owned by notorious landlord Steve Croman was officially acquired last month by the nonprofit organization Services for the Underserved (S:US).
The acquisition, first announced in April, will turn 69 of the building's 80 units into affordable housing for homeless families with CityFHEPS rental vouchers. Longtime tenants will be able to continue living in the remaining 11 rent-stabilized units. The sale was made possible by a $27 million loan from HPD.
“We are very pleased to complete this acquisition,” Arlo Chase, senior vice president of real estate for S:US, said in a statement, adding that “as an organization, we are committed to being good neighbors to the residents of Hell's Kitchen.”
