1520 Sedgwick Avenue, where hip-hop is said to have started. (Photo: Ozier Muhammad/The New York Times)Why is a real estate mogul who once flipped San Francisco’s famous Bank of America Center to a group of investors that included Donald J. Trump interested in acquiring a working-class apartment building on the outskirts of the Bronx for less than $14 million?
“We think it’s odd that a guy of this stature is buying a 100-unit building on the access road of the Major Deegan that will be rent stabilized even if it comes out of Mitchell-Lama,” said Dina Levy, director of organizing and policy with the Urban Homesteading Assistance Board. “It’s literally like saying Donald Trump wants to buy a 100-unit rent-stabilized building that sits in the middle of nowhere. It’s crazy. It’s alarming. What does it mean exactly, we don’t know. But it can’t be good.”
Thus, the tenant groups, with support from United States Senator Charles E. Schumer, announced this morning that they were in talks to intervene in the proposed sale and buy the building themselves, with subsidies from the city.
The talks are continuing and the agreement might not materialize, but if successful, the negotiations would be a breakthrough in a long-running discussion over the apartment building, where experts say hip-hop was born in 1973. (A couple of readers in the comments dispute this claim, but we’re with Ricky D on this one.)
The building, at 1520 Sedgwick Avenue, would be just another one of the flurry of Mitchell-Lama buildings that have changed hands over the past few years, were it not for its community room. It was there, in 1973, that Clive Campbell, known as D.J. Kool Herc, started turning the tables at community parties, producing a sound, a rhythm and a style that spilled out into the nearby parks and streets and, later, to the world. Mr. Campbell was living in the building at the time with his sister, Cindy Campbell.
The building has 100 units rent for an average of $1,000 a month under the state’s Mitchell-Lama affordable housing program, in which private landlords receive tax breaks and subsidized mortgages and, in turn, agree to limit their return on equity and rent to people who meet modest income limits. The landlords are allowed to leave their contracts after 20 years, and the rate of those choosing to do so has accelerated since 2001. Last February, tenants were told that the owners planned to leave the program.
Often, the same buyers keep popping up for the Mitchell-Lama buildings. So Ms. Levy, whose nonprofit group supports tenant control of limited-equity housing cooperatives, was a bit surprised to see a new name, Mark Karasick, as a proposed buyer of 1520 Sedgwick.
“Clearly he is not going to make money from owning and operating this project,” Ms. Levy said.
She suspects that they may be picking up the building to resell it quickly. “Either to speculators that don’t know enough, but don’t know they don’t know enough or unscrupulous speculators,” she said. “Or there is a third possibility. The dollar is weak. We are thinking about foreign investors coming in.”
No matter what, she said, it is not good for the tenants — who have set up a Web site, Save1520.org, to publicize their situation.
In July, the tenants got a boost when state officials indicated that the building was eligible to be listed on the federal and state registers of historic places, even though it is not at least 50 years old — the normal threshold for such a designation.
In December, the owners of the building, who operate under a partnership called 1520 Sedgwick Associates, and Mr. Karasick offered to step out of the deal and let residents buy the project.
The last several days have featured negotiations involving the tenant group, the owners and even Mr. Karasick himself, according to Ms. Levy. But the asking price to unravel the deal is $14 million — which is the housing advocates say is way beyond the $5 million or $6 million they have calculated based on the future rent stream. And the tenants group says it is even prepared to pay above the market rate, since the group may be receiving subsidies from the city’s Department of Housing Preservation and Development and Housing Development Corporation.
Mr. Karasick’s lawyer, Steven Holm, did not respond to phone and e-mail messages requesting comment. For his part, Mr. Karasick has said his interest in the building has nothing to do with the building’s status as the birthplace of hip-hop, and tenant groups have been suspicious of his motives.
Mr. Schumer, a Democrat who was elected in 1998, is not particularly known as a fan of hip-hop, but the New York senator has taken on the project as a cause.
“In an increasingly turbulent housing market, 1520 Sedgwick is in danger of losing its affordable status, as its owner prepares to sell the building to wealthy speculators whose only hope of profiting on the building hinges on hiking the rent rolls,” Mr. Schumer said in a statement. “That is why it is essential that the owner negotiate a reasonable, affordable deal with the tenants and their representatives to preserve affordability in this special place for the long haul.”
Ms. Levy said she feared that Mitchell-Lama projects were increasingly seen for their investment potential and not for their original purpose — as affordable housing. “They are perceived as ‘undervalued assets,’” she said. “That is the term they are using in meetings with us. To us, it’s undervalued because it affordable. So your whole premise of buying it is to make it as unaffordable as possible.”
A flier promoting a performance by D.J. Kool Herc at 1520 Sedgwick Avenue on Aug. 11, 1973.
From 1 to 25 of 40 Comments
As a native New Yorker who is a first hand lover, indulgent and witness to the culture and evolution of Hip-Hop and its unpolluted origins, it will pain me deeply to see 1520 Sedgwick become victimized by NYC’s gentrification push and heartless real estate pimps. There should be a relentless and concerted effort by the iconic figures in Hip Hop, (Jay Z, Puffy, Russell Simmons, etc.), to ensure not only the residents of 1520 Sedgwick, but the entire Hip-Hop nation, that the birthplace of their ‘gravy-train’ will remain intact. Principally speaking, if there was ever a way for one to give back to the culture that affored them “a way out,” then this is definitely the opportunity. I can’t tell one how to spend or invest his/her finances but, it would seem, that if they can buy countless, obnoxios items that immediately depreciate in value, over and over and over and over… then this should be a no-brainer.
— leer4lifeWhen are our elected officials going to fight to retain affordable housing in New York City? I now live in Brooklyn in an overpriced one-floor of a row-house situation but lived in the Bronx for over 40 years. This is a serious crisis that is affecting all New Yorkers who are not rich.
I never thought I’d leave New York but am seriously considering it. Is it worth to pay over $1000 a month rent to live with constant noise, lack of heat and a bathroom that would qualify as a “throwback” (external pipes, tub w/feet, etc.)?
— SiouxieFrom where I stand, New York City is dying a slow death.
Where’s the good Reverend Al Sharpton when you REALLY need him?
— Jason F.Maybe the investors can renevate the Apartment into a special museum in honor of DJ Kool Herc instead of turning it in to some condos. Manhattan has plenty of condos.
— DocHousing Projects need to come down! Those people have been in those unfortunate circumstances for so long that’s all they know and they are afraid of change and quite possibly don’t even realize they can afford something suitable with some education around financial management. People have been there so long, they could have been educated, co-oped, purchased and revamped the building by now themselves!
— YolandaMarialeer4life you could not have stated it better. Where are those in the rap game with the deep pockets who not only benefitted financially from this movemnet, but would likely be living in joints like this had they not been touched by it?
— Bob SnottyIts amazing how the Ganster has portrayed itself as a candy coated Hip-Hop. They will play this like the Race card. You don’t like hip hop cause we’re black. We are at a point now where the African community will put up a fight for the last cookie. I’m gonna get mind, mindset. Their prosecution will be their free pass to everything. Pick up your drawers and grow up, Slacker. Your mothers breast has dried up and now you must pick youreslf up by your boots straps. Are you man enought to do it?
— mokescrenReal estate “take overs” in low income areas by overzealous and greedy fatcats is a sickening example for us all. If the Trumps and Ratners of the world continue this trend where will regular folks live? A better question would be if they are already wealthy and established when will enough be enough? No one cares about the little guys who are struggling to put food on the table and keeping a roof over their heads. It’s a damned shame to live in fear of losing your home and neighborhood to people who clearly don’t need another good “real” lead or tax break.
— Lydgia P.I agree with Siouxie: New York is dying a slow death. Only I’m starting to think it’s not so slow, and the reason is Mayor Bloomberg.
Notice how there’s no mention of Mayor Bloomberg in the above story. Do you think the Times just chose not to include his comments on the issue, or is it simply that Bloomberg has nothing to say on the subject? I think it’s the latter. Since Bloomberg took office, he has never spoken out on behalf of those who are struggling to get by in New York City. When the MTA raised its fares right after 9/11, Bloomberg never once spoke up on behalf of New Yorkers (granted he can’t control the fares, but he could stand up for his citizens). When Stuyvesant Town went on the block imperiling renters in that development, he remained silent, as he has on the matter of the tenants in the Carnegie Hall building facing eviction. Bloomberg does not and will not fight for affordable housing for New Yorkers. And he’s thinking of running for President? Please!
— christopher“House music” began in the ’80s in Chicago and then evolved into hip-hop. All links to 1970’s NY are indirect and tenuous.
— Sorry New YorkComment #1 says it best. It would be a deep loss to our culture to see this conversion come to fruition. Love or hate hip hop, this is beyond taste. This is history. Good luck New Yorkers, I hope you win this battle.
— Mike W.Well Leer, unfortunately these “icons” of hip hop that you mention seem to be busy counting their money. Not one of them has any significant history of giving back to the community in any significant way. The guys who would be likely to do this don’t own large stakes in record labels, instead its the not-rich (most likely) independent artists that this will really cause an outrage in, but they don’t have the financial power to do anything about it.
Still, all in all this is a continuing disaster. The dissappearance of affordable housing will not work out well for the city, it’s only a matter of time before you start to see a situation like Berlin. Too many apartments and not enough people who can afford them.
— Scott RBecause hip hop was born in a rec room of a Mitchell Lama building, means that the building can’t ever be sold? How does selling the building affect the rec room, and what is the value of the rec room anyway? Its not as if they are tearing the building down, and even if they were, its not architecturally distinct like the Audobon Theater. The Bronx, which is about 75% black and latino, has been getting better and better, and I don’t see that minorities are being displaced. C’mon people. Get a real cause.
— artiganoI still don’t understand why there has not been any plans for a Hip Hop Hall of Fame in the Bronx…it would be a HUGE economic boon, surely profitable if done right. Just don’t forget the graffiti wing…
— keatsoAlso to “Sorry New York”, you’re joking right?
Hip Hop does have roots in all forms of music, but since Kool Herc was Jamaican, I would say there is more direct lineage to Reggae Soundclash DJs. Stories of soundsystem “battles” from the early hip hop era seem to support this.
Disco and Dance music in NEW YORK certainly played a role too, not so sure about Chicago House music.
Besides, how do you account for the virtual absence of Chicago Hip Hop throughout the 80s and 90s?
That which everyone is referring to here is rap not hip-hop. Timeline: Disco (NYC 1970’s) ->
Rap(NYC 1970’s) Meanwhile it went: Disco (NYC 1970’s)-> House (Chicago / Detroit ’80s)
-> Hip-hop.
Despite all the wishful thinking and backfilling of history, “hip-hop” as a description of a type of music came directly from “house” musicians. (See Mann Parrish’s “Hip-hop Be Bop” for the direct lineage.)
Ignoring all else, anyone who was around during the time would admit that the popularity of the terminology “hip-hop” to refer to what it does today did not emerge until immdediately after the popularity of house. Searching for simple instance of the usage of the term somewhere in the past does not a birthplace make.
While we’re on the topic of giving props: Jazz is from the New Orleans and Chicago…not NY.
— Sorry New YorkHey “Artigano”, this is a REAL “cause”. And for you to write “…It’s not as if they are tearing the building down, and even if they were, its not architecturally distinct like the Audobon Theater.”
— BlackbrassHow do you know what’s ‘architecturally distinct’? Do you know this building is on its way to becominn an historical landmark? Woud that make it “distinct” enough for you? The same developers who have been turning Harlem into co-ops and condos have spewed the same rhetoric you’re mouthing off. Furthermore, what may seem insignificant to you, means a heck of a lot to others.
Most people fight tooth and nail, work tremendous hours and several jobs to get the heck out of a project — and now they want to ’save’ a project?
Wouldn’t nice but affordable housing be a better boon for the area? I don’t want to see anyone priced out of their neighborhood – but I sure as heck also don’t want to see precious resources mis-used while there is even one single homeless person in NYC.
— KatyThis is NOT the birthplace of Hip-Hop. It was born in Jamaica, plain and simple. DJ’s were “rapping” over dub plates at sound clashes well before ‘73 in Jamaica. “U-Roy” was Dj-ing dancehalls and rapping when Kool was 6 years old. The birthplace of Hip-Hop in New York? Sure, …Get your facts straight and learn your history, NYT comes through with another under researched bogus article.
— DamienHousing is Getting too expansive New York,NY Nor NJ is worth all that money. they went in arm and a leg form everything in NYC
— screwedDamien -
Rap does not equal hip-hop
— Sorry New YorkI gotz to getz me one of those condos, Fo-shizzle.
— JoePost 17: “Wouldn’t nice but affordable housing be a better boon for the area?”
That is precisely the sort of thing that just doesn’t exist in this area anymore. Even “nice but affordable” housing in this area is just below the $1,000/month mark. Check out the lofts that have been renovated in Port Morris and Mott Haven. Affordable, indeed–if you’re coming to the Bronx from Manhattan and are looking to get away from bloated, overpriced areas like Williamsburg and Park Slope. Not so affordable if you’re a working-class individual. At 24–despite making a decent salary as a journalist–I’m still living at home in Clason’s Point because moving into the City has become so expensive.
Hello, Jersey City.
— Bronx NativeThats like saying Be-Bop does not equal Jazz,
— DamienAll squares are rectangles but not all rectangles are squares.
— Sorry New YorkWow! I love reading all of the well formulated opinions of my fellow New Yorkers.
Yolanda Maria- I think that you have valid points in your argument and I am happy to see that some people are not afraid to encourage others to be more proactive about bettering themselves.
Artigano- well said (beginning of argument)
Scott R- I agree that it will be the independent, yet broke, artist who cares most. However in response to your comment about Berlin, I will say that that is the beauty of a free market. If there are more apartments than people who can afford them, the prices will come down- that is fact.
Leer4life- It would be nice to see those iconic figures more involved. I am not an avid hip-hop fan, but I am familiar with a large community of socially conscious/aware hip-hop artists who would be more likely to help than guys like Puffy. It is just too bad that we as consumers prefer to support the “gangsta rap”, “MTV rap”, or whatever you would like to call it, more than pro-education, pro-culture, pro-human artists.
Lydgia P- I am not sure that you are correct in saying “No one cares about the little guys who are struggling to put food on the table and keeping a roof over their heads.” After all, isn’t every political candidate’s platform centered around just those issues, for whatever that is worth. Additionally, if you would like to see altruism, go no further than Bill Gates and Warren Buffet. Of course they are still rich, but you can not deny their charitable contributions to society.
Siouxie- the answer is no. You are free to move to Florida where you can rent a house for $400 a month. Perhaps moving is a little more complicated than that. But should I, as a tax payer renting at full market price to live with the noise and sub-standard fixtures, have to pay extra so that you can have a nicer place? That is the debate, right?
Mokescren- “Pick up your drawers and grow up, Slacker. Your mothers breast has dried up and now you must pick yourself up by your boots straps. Are you man enough to do it?” Right on! What made this country great was ambition and hard work. That is what is really dying. Not NYC. Hey, let’s get over this idea that we are all entitled to something and just start contributing to society.
Jason F- very funny.
OK, I have taken up enough space. I want to thank everyone for voicing an opinion. What a remarkable country this is that allows us express our ideas in such a free manner with no fear of physical retaliation.
— Nate