Hello everybody — Hope your week is off to a great start! A new episode of Notes from the Front is live, featuring Seth Glasser, a licensed associate real estate broker and leader of the New York Multifamily Group at Marcus & Millichap. In this conversation, we talk about the hidden financial and political mechanics of New York City’s rent-stabilized housing market. We discuss why occupied apartment buildings in the Bronx are selling for as little as $50,000 per unit, and whether this represents a once-in-a-generation buying opportunity or evidence that something fundamental has broken. Seth walks us through how the 2019 New York State tenant laws (HSTPA) transformed the industry from a future-cash-flow business to a current-cash-flow business, wiping out building equity, removing incentives for owners to reinvest, and leaving ~60,000 units vacant. We explore the “doom loop” of deferred maintenance, housing violations, and the severe public health consequences - like mold and childhood asthma - that occur when buildings are starved of capital. We also dig into the politics behind the word “slumlord,” the coming wave of underwater mortgages hitting regional banks, and the staggering loss of “tenant equity” associated with the end of lease buyouts. For a more detailed chapter list, see below. You can access the episode on Spotify, Apple, or YouTube. I hope you find this conversation as fascinating as I did! ~ Michelle 🔗 Listen: [Spotify] | [Apple Podcasts] 📺 Watch: [YouTube] 📍 Chapters: 02:19 — How Seth entered the New York multifamily business 05:24 — What the public misunderstands about operating apartment buildings 09:02 — Cap rates, net operating income, and the hidden cost of repairs 11:38 — How rent stabilization shifted from future to current cash flow 16:26 — Bronx apartments selling for $50,000 - $70,000 per unit 22:12 — How the 2019 rent laws changed the business model 29:12 — Who is buying—and whether this is really a fire sale 31:03 — Case study: How an $8 million building became worth $2.4 million 35:42 — HPD violations, AEP charges, and the building “doom loop” 41:05 — How a $15 million building becomes a $5 million building 45:05 — Refinancing, underwater mortgages, and the losses facing banks 52:04 — New York’s divided rental market and today’s remaining buyers 58:43 — Is homeownership a weapon, or a human right? 1:02:03 — What is a “slumlord”? 1:03:38 — COPA, enforcement, and the future of private ownership 1:11:06 — The public health tragedy: Leaks, mold, and childhood asthma in the Bronx 1:20:55 — Three policy changes that could restore the housing stock 1:26:36 — Landlords, tenants, and the politics of oppressor versus oppressed 1:31:44 — The disappearance of tenant buyouts and “tenant equity” 1:34:42 — Is there reason to hope? 🏢 Seth’s Work: New York City Multifamily Podcast Seth Glasser at Marcus & Millichap 📧 Contact Michelle: michelle@notesfromthefront.com For new episode alerts, subscribe below. Have questions, feedback, or ideas for future guests? Leave a comment or send an email. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.notesfromthefront.com
