November 7, 2017

November 7, 2017 - Professor Stewart Sterk comments in the Commercial Observer on the ongoing Bedford Union Armory development plans in Crown Heights, Brooklyn. The redevelopment of the armory includes a mix of rentals, condominiums, office space for nonprofits and a recreational center. It has faced push back from the local community, and the percentage of below-market rentals the plan includes has been up for debate.

“When you want to do an affordable housing project with a [for-profit] developer, you have to see what the developer can stand,” said Stewart Sterk, the director of the Center for Real Estate Law & Policy at the Cardozo School of Law. “If you ask for too much, the developer can always do other things with its money. And if it won’t get a return on its investment, it will go elsewhere. The city is never in a good position to evaluate the developer’s risk in the project. The city knows that if it asks too much of a developer, the project will fold.”

Read "Armory Conflict: Is the Mayor Willing to Kill a Development Over Subsidies?" in the Commercial Observer.