Devastated Milbank Buildings Finally Sold

Speaker Christine Quinn, Mayor Bloomberg, Borough President Ruben Diaz, Sen. Gustavo Rivera and tenants celebrate the sale of the Milbank portfolio at a press conference yesterday.

By JORDAN MOSS and JEANMARIE EVELLY

It was a rare scene for the transfer of a residential apartment building: Tenants, a new landlord and a variety of city elected officials, from the mayor on down, gathered Tuesday for a press conference that turned out to be a celebration.

The now-infamous Bronx Milbank buildings, including one at 2264 Grand Avenue, were finally sold last week to a new landlord after months of local organizing and city involvement. Tenants, advocates and elected officials had fought to wrest the portfolio of 10 deeply troubled properties from irresponsible bankers and owners to a responsible party who could afford to make them livable again.

Over 100 people showed up for the announcement of the sale at 3018 Heath Ave., where the building had brand new windows -- the first of what tenants hope will be many improvements to come at this and the other Milbank properties.

"We now have someone to communicate with -- someone to hold accountable," said one tenant, Twyla Rashid, who described conditions at her building as “devastating.”

The one to hold accountable now is Steven Finkelstein, a Scarsdale-based landlord who purchased the mortgage and the deeds to the properties in a $28 million deal last week, and faces a mountain of some 4,000 housing code violations.

Milbank Buildings Sold to Scarsdale Landlord

Milbank's 10 Bronx buildings have over 4,000 housing violations among them. (File photo by J. Evelly)

 

Another chapter in the ongoing Milbank Bronx housing saga: the 10 crumbling apartment buildings were finally sold last week to a Scarsdale-based landlord after months of negotiations, according to Crain's New York.

Steve Finkelstein bought the mortgage and the deeds to the properties in a $28 million deal, the article reports, promising to start serious and immediate repairs at the violation-riddled buildings, and agreeing to report to HPD within 30 days about what work he's done.

Finkelstein, who owns 31 other buildings in the Bronx, told Crain's he expects to face an "amazing amount of work," but that he's sending eight-man crews into every building to start on repairs.

HPD Will Now Be "Proactive" in Repairing Milbank Buildings

Just a little followup to Greg's post below, about HPD's promise for extensive inspections and emergency repairs on the Milbank properties, a portfolio of crumbling Bronx apartments that went into foreclosure in 2009.

As Greg said, HPD Commissioner Rafael Cestero and City Council Speaker Christine Quinn said today that the city will more aggressively address Milbank's plight by making thorough inspections, issuing violations and starting repairs on the most health-threatening problems, like apartments with lead paint in them.

Cestero, who took a tour of three of the buildings this week with tenant leaders and organizers from the Northwest Bronx Community and Clergy Coalition, said the conditions are some of the worst he's ever seen.

"I have to say, in my 21 years working in the affordable housing industry in this great city, I have never been more shocked, angered and frustrated," he told reporters on a conference call this morning.

HPD normally sends out inspectors to look at an apartment when someone lodges a housing complaint with 311. But officials said today that taking this "proactive" approach with Milbank--going in to make an inspection in an apartment even if no one has complained about it yet--will make the difference in turning the buildings around.

"That should send a message to any potential buyer," Quinn said. "HPD is going to be on the owner 24/7."