A
ya Acquisitions' recent purchase of Renoir House, a 152-unit Upper East Side building, marks a shift towards more moderate-risk investments for the company. The $45 million deal was financed with a $34 million loan arranged by Ariel Property Advisors.

    Founder Amir Shriki plans to implement a value-add strategy at Renoir House, which is mostly market-rate rentals. However, the city's recent good cause eviction law has complicated this plan by limiting evictions and rent increases above 10 percent. This means Aya will need to wait for renters to move out before upgrading units.

    Shriki is no stranger to long-term hold strategies, having closed several rent-stabilized deals since 2021. Landlords of rent-regulated properties are restricted from raising rents above the adjustments approved by the Rent Guidelines Board, which often lags inflation. This mismatch has led to fire sales and underwater portfolios for investors.

    Aya's purchase of two rent-stabilized buildings on Riverside Drive in February was made at 64 percent below their 2013 price. The company plans to hold these properties for at least 10 years, betting that the state legislature will roll back the rent law or change its impact. As one investor noted, sentiment may be negative towards rent-stabilized buildings, but they believe this will eventually shift.