Author Topic: El Rico Tinto Gone (Read 9813 times)

cultartist · « **Reply #30 on:** October 05, 2018, 01:07:56 PM »

Quote from: ljr on October 04, 2018, 10:55:35 PM

From a post on JH Families:

As we suspected, the landlord raised the rent above and beyond the capacity of El Rico Tinto to pay and so they had to close. It is likely that this is the reason that nearby Growing Farm had to close as well.

the question is--who CAN pay these rents? Not, I assume, many of the establishments along 37th. Of course, many of these landlords make more money from tax write-offs on a vacant property while raising their personal portfolio. None of this is good. I hope that our new local representatives can come in and cut through some of these problems when they're in office. Capitalism? Hardly--this is a system rigged against locals in favor of out-of-state landlords.

dssjh · « **Reply #31 on:** October 05, 2018, 02:59:55 PM »

i wrote a thesis about the death of the east village at the hands of such landlords.

in 1985.

500-1000 percent rent increases displacing longtime businesses, often taken over by chains that went belly up in a year, leaving places vacant for ages. focused on a place called Orchidia, a local diner/coffee shop i loved. rent was more than septupled, they couldn't pay and Steve's Ice Cream took over. for 11 months.

Simka · « **Reply #32 on:** October 06, 2018, 06:45:21 PM »

Quote from: dssjh on October 05, 2018, 02:59:55 PM

i wrote a thesis about the death of the east village at the hands of such landlords.

in 1985.

500-1000 percent rent increases displacing longtime businesses, often taken over by chains that went belly up in a year, leaving places vacant for ages. focused on a place called Orchidia, a local diner/coffee shop i loved. rent was more than septupled, they couldn't pay and Steve's Ice Cream took over. for 11 months.

I'm impressed that you chose that for your thesis. I didn't live in the East Village, but I remember those days well. Now the EV has largely been taken over by NYU and its students.

eddie · « **Reply #33 on:** October 07, 2018, 02:35:05 PM »

Quote from: cultartist on October 05, 2018, 01:07:56 PM

Quote from: ljr on October 04, 2018, 10:55:35 PM
From a post on JH Families:

As we suspected, the landlord raised the rent above and beyond the capacity of El Rico Tinto to pay and so they had to close. It is likely that this is the reason that nearby Growing Farm had to close as well.

the question is--who CAN pay these rents? Not, I assume, many of the establishments along 37th. Of course, many of these landlords make more money from tax write-offs on a vacant property while raising their personal portfolio. None of this is good. I hope that our new local representatives can come in and cut through some of these problems when they're in office. Capitalism? Hardly--this is a system rigged against locals in favor of out-of-state landlords.

i've never heard of a write off MAKING you money, tax write offs just lessen your losses. People need to stop looking at LL's as just being greedy. owning property doesn't make someone greedy. LL's with vacant spaces take a large hit every month.

The reality is NYC is expensive, for LL's also. And businesses are at a crossroads in NYC. There are empty store fronts everywhere. It's not just LL's being greedy, it's the internet changing how business is done and who can survive in business.

dssjh · « **Reply #34 on:** October 07, 2018, 02:57:39 PM »

if that were entirely true, storefronts wouldn't sit vacant for years, with landlords not budging a penny on asking rent.

ljr · « **Reply #35 on:** October 07, 2018, 02:59:09 PM »

I don't really understand the whole tax write-off thing, but I know I have heard that the write-off can be more financially advantageous than renting out the space. Otherwise, why would so many spaces be empty for so long? And why would landlords keep jacking up rents to the point that tenants who cannot afford the increase have to leave--meaning the landlord gets nothing--if somehow the tax write-off was not worth it to the landlord? Wouldn't the landlord then just keep the rent steady and keep the tenant? It's not like these spaces are being immediately rented out to higher paying tenants--they are remaining empty, sometimes for years.

eddie · « **Reply #36 on:** October 07, 2018, 04:18:11 PM »

Quote from: dssjh on October 07, 2018, 02:57:39 PM

if that were entirely true, storefronts wouldn't sit vacant for years, with landlords not budging a penny on asking rent.

well very few properties sit vacant for years, even less so with LL's not budging even a penny as you say. Sure there are greedy LL's, but the issue is much greater than that. LL's are still losing money if spaces are vacant, but they could also be waiting for a good fit.

eddie · « **Reply #37 on:** October 07, 2018, 04:21:16 PM »

Quote from: ljr on October 07, 2018, 02:59:09 PM

I don't really understand the whole tax write-off thing, but I know I have heard that the write-off can be more financially advantageous than renting out the space. Otherwise, why would so many spaces be empty for so long? And why would landlords keep jacking up rents to the point that tenants who cannot afford the increase have to leave--meaning the landlord gets nothing--if somehow the tax write-off was not worth it to the landlord? Wouldn't the landlord then just keep the rent steady and keep the tenant? It's not like these spaces are being immediately rented out to higher paying tenants--they are remaining empty, sometimes for years.

that's really just nonsense and people trying to make LL's look bad. if that were the case, why would any LL rent ANY space? just buy it and let it sit vacant without the hassle of tenants right?

A write off just lessens your losses but you are still losing money. a 10k tax write off for instance means you pay taxes on 10k less income, so saves you around $3,000. but you are still LOSING $7k.

ljr · « **Reply #38 on:** October 07, 2018, 05:42:05 PM »

Eddie--well, if it's just "nonsense," why have I been reading about this as a major issue in NYC? I've read discussion about imposing a vacancy tax to get landlords to not allow spaces to sit empty, yes, for years, with the explanation being a tax write-off. I don't know why you think this happens rarely. I can think of quite a few spaces in JH that did sit empty for years, or are still sitting empty. Can't everyone who lives here? You seem very sure of your opinions and dismissive of other opinions, but I don't get the feeling you really know much about this topic.

eddie · « **Reply #39 on:** October 07, 2018, 05:55:40 PM »

Quote from: ljr on October 07, 2018, 05:42:05 PM

Eddie--well, if it's just "nonsense," why have I been reading about this as a major issue in NYC? I've read discussion about imposing a vacancy tax to get landlords to not allow spaces to sit empty, yes, for years, with the explanation being a tax write-off. I don't know why you think this happens rarely. I can think of quite a few spaces in JH that did sit empty for years, or are still sitting empty. Can't everyone who lives here? You seem very sure of your opinions and dismissive of other opinions, but I don't get the feeling you really know much about this topic.

you're confusing two different things. And taking shots at me for no reason. I'm simply stating you do not make money on a tax write off.

I'm not dismissive of anyone's opinion, its a huge problem, not just in JH, but all over NYC. NY times just did an article on empty storefronts if you care to read about it. Link below. I just think the narrative of "LL's are just greedy", without even understanding what a tax write off is, is irresponsible and misconstrued. I don't know the situation at El Rico, maybe this was a LL wanting too much in this case. but there is a much greater issue in NYC and it's not always LL greed.

https://www.nytimes.com/interactive/2018/09/06/nyregion/nyc-storefront-vacancy.html

cultartist · « **Reply #40 on:** October 07, 2018, 06:09:58 PM »

Hey maybe Eddie is a trolling landlord—oh sorry, “LL”.

Change the tax laws.

jeanette · « **Reply #41 on:** October 07, 2018, 06:59:04 PM »

Eddie is a long time poster on this board.

Defensive remarks and name calling does not further the discussion.

I am interested in Eddie's perspective as well as others'.

Please continue the conversation.

jeanette · « **Reply #42 on:** October 07, 2018, 07:18:38 PM »

If a building owner has no mortgage, having bought the property when it was comparatively speaking a steal, wouldn't it be possible that profits are great enough to not care about a full house, so to speak? Considering taxes, licenses, repairs, energy bills, and fines that the LL pins on the tenants, what would, generally speaking, costs be compared to rents? From my viewpoint, owning a building in NYC where upkeep does not appear to be stellar, looks like a big money maker without huge costs.

I once had a business and reported a loss in the first year. It helped me a lot; I don't remember the details--it being many years ago--but I remember being pleased with the outcome.

Simka · « **Reply #43 on:** October 08, 2018, 09:26:48 AM »

Quote from: eddie on October 07, 2018, 04:18:11 PM

Quote from: dssjh on October 07, 2018, 02:57:39 PM
if that were entirely true, storefronts wouldn't sit vacant for years, with landlords not budging a penny on asking rent.

well very few properties sit vacant for years, even less so with LL's not budging even a penny as you say. Sure there are greedy LL's, but the issue is much greater than that. LL's are still losing money if spaces are vacant, but they could also be waiting for a good fit.

Okay, let's say lessening their tax burden isn't the reason landlords storefronts sit vacant for years (and yes, years—I have seen this, especially in the area near Columbus Circle where I work). What, then, is your explanation for why they're willing to wait so long for a "good fit"? What kind of good fit is worth the loss of thousands of dollars for months on end?

Jeffsayyes · « **Reply #44 on:** October 08, 2018, 10:58:44 AM »

Restaurants are a hassle. They go out of business frequently and require so much expenses. Not the best tenants unfortunately - especially when there are so many people that need to open ones to survive here.

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Author Topic: El Rico Tinto Gone (Read 9813 times)

cultartist

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dssjh

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Simka

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eddie

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dssjh

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ljr

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eddie

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eddie

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ljr

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eddie

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cultartist

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jeanette

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jeanette

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Simka

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Jeffsayyes

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