A lawsuit filed in New York alleges that Blackstone, one of the biggest players in real estate, overcharged thousands of tenants in Manhattan rent-stabilized apartments by more than $30 million.
While the complaint focuses on the luxury tower at 8 Spruce St., it also raises a broader question about whether landlords that receive major public tax benefits are following the affordability rules attached to them.
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Filed by the Housing Rights Initiative, the lawsuit accuses Blackstone and associated management entities of illegally raising rents at an 898-unit stabilized building, affecting as many as 3,500 renters, amNewYork reported.
The complaint says BREIT Operating Partnership, Beam Living, and 8 Spruce overstated the lawful rent for apartments and, in some renewal cases, raised prices by more than 50%. Blackstone bought the building in 2022 for $930 million…