Last Affordable Building on Billionaires' Row Rallies Against Displacement at Land Mogul Michael Dell's Door

NEW YORK, NY (08/20/2025) (readMedia)-- Today, members of the Ground Lease Co-op Coalition and residents of Carnegie House Co-op - the last affordable building on Billionaires' Row - rallied outside tech billionaire and Carnegie House investor Michael Dell's One57 penthouse, urging state officials to close gaps in housing law that leave more than 25,000 New Yorkers vulnerable to displacement by predatory landlords. Carnegie House, home to 324 families, is one of hundreds of buildings across southern New York State at risk due to this lack of regulation. After a recent rent reset, the 21-story co-op - which sits on the same block as Dell's apartment - faces a 450% rent hike that's pushing the building toward insolvency. Residents living in ground lease co-ops, originally meant to support middle-class homeownership, now form the last major unprotected class of 'tenants,' with virtually no protections or oversight of landowners.

WATCH a livestream recording of the press conference here or a 2nd recording here.

Two years ago, Michael Dell, quietly expanded his real estate footprint and helped finance Carnegie House's land takeover by Rubin Schron and David Werner - two of New York's most infamous land tycoons. In 2023, Dell's family investment office MSD Partners lent $100 million to Schron and Werner, who bought the land below Carnegie House for $261 million from its original landowners a decade earlier.

With the support of lawmakers, members of the Ground Lease Co-op Coalition showed up to Billionaires' Row in droves to demand action and expose the private equity moguls exploiting their homes.

"The families of Carnegie House are in the fight of our lives, defending our homes from Michael Dell and our ultra-wealthy landowners. Like tens-of-thousands of New Yorkers living in ground lease co-ops, we've been starved of the most basic housing protections to hold our landlords - and their investor buddies - accountable. Now, we're facing the consequences of political inaction: an outrageous 450% rent hike from our landowners that threatens to displace our entire building," said Richard Hirsch, president of the Carnegie House Board of Directors. "Whether you're a renter or a homeowner, every New Yorker deserves reliable regulation and the opportunity to stay housed. That's not been the case for our co-ops. We are urging the State to close the legal loophole and protect our families immediately; it's about fundamental fairness."

"I've lived here for 27 years, long before it was called Billionaires' Row. When I moved in, I planned to live here for the rest of my life. But now I'm fearful of being forced out of my home, at this point in my life. The 450% rent hike that Michael Dell and our billionaire landowners want to impose is beyond egregious. State officials rightfully recognize the value of creating fair and affordable housing, and protecting other resident classes. Ground lease co-ops just want the same basic rights all New Yorkers deserve," said Sandy Dell, longtime resident of Carnegie House Co-op and member of the Ground Lease Co-op Coalition.

"Carnegie House is not alone in their struggle. Here in Queens and across New York, our co-ops are fighting off landlords seeking to push us out of our homes and convert our buildings into luxury units. And in the midst of this volatile housing market, we need fair tenant protections now more than ever. That's why we're standing with the families of Carnegie House and every ground lease co-op facing predatory lease terms. It's time for the State to close the legal loophole and grant our families basic protections, like every other real estate class. We can't afford to wait any longer," said Anton Lekic, manager of Murray Hill Cooperative and member of the Ground Lease Co-op Coalition.

"The crisis at Carnegie House mirrors what's happening to ground lease co-ops statewide - working families, middle-class homeowners, and seniors are being priced out of our own homes. At Mainstay Co-op in Queens, our families are sick with fear at what's to come as we grapple with our own rent reset. More than 25,000 New Yorkers are on the brink of losing the co-ops we've worked to maintain for generations, all because of a lack of regulation. Our co-ops were built to provide affordability and stability, not serve as profit engines for private equity landlords who own the land beneath our co-ops. From Queens to Manhattan, we're calling on the State to protect our families and preserve our homes," said William Maiman, President of the Mainstay Co-op Board and member of the Ground Lease Co-op Coalition.

BACKGROUND

As New Yorkers battle against skyhigh land values, historically low vacancy rates, and some of the nation's highest cost burdens, ground lease co-op residents are fending off displacement at the hands of landowners looking to convert their buildings into luxury housing. Unlike traditional co-ops, co-op buildings on leased property aka "ground lease co-ops" own their homes but lease the land beneath their buildings from landowners. Without reform to ensure standard protections, a loophole in State housing law offers room for new landowners to exploit their longtime residents, due to their unique co-op structure.

Originally established to support middle-class homeownership in the '50s, more than half of New York's ground lease co-ops are located in Queens, Brooklyn, and the Bronx. Many ground leases were written and signed by developers that no longer exist, changing hands to new, wealthy landowners over time. Decades later, ground lease co-ops continue to house New York's middle class, with the majority of residents earning just above the city's median of $76,000 across all five boroughs.

About the Ground Lease Co-op Coalition: The Ground Lease Co-op Coalition (GLCC) is a non-partisan coalition of co-op owners from diverse socioeconomic, cultural, and ethnic backgrounds advocating to save their homes. Amid the statewide housing crisis in New York, this coalition supports housing fairness, stability, and affordability for the more than 25,000 New Yorkers who live in ground lease co-ops.

About Carnegie House Co-op: Built in 1962 and converted to a co-op in 1978, Carnegie House is now home to 324 middle-class families, who are at risk of displacement due to an extreme 450% rent hike proposed by their landowners. Eager to remain in their homes, Carnegie House's residents are working to protect ground lease co-ops all over New York and advocate for standard legal protections, as they fight against the threat of displacement and the ongoing housing crisis.

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