From Manhattan Media
Jul 2007

Bookmark This Page Subscribe to RSS feed
Search This Site
Get Updates by Email
Suggest Stories

Home > News

Top Clinton Backer Behind Eviction of Middle Class Manhattanites

Carla Zanoni

May 15th, 2007

Hedge Funder Marc Lasry throws thousands to Democratic politicians, and throws Upper West Siders out of their apartments

Marc Lasry is a major Democratic donor, a board member of the William Jefferson Clinton Foundation's Clinton Global Initiative and a "Hilraiser" who has committed to bundling at least $100,000 for New York's junior senator.

But as Shakira and Rosario Castronovo are discovering, he does not seem to let his political connections get in the way of business.

When the Castronovos were preparing for the arrival of their second child in March, the last thing they had on their minds was moving. The two had lived in an apartment at 65 West 95th Street for three years with their two-year-old daughter. Shakira lived within a few blocks of the school where she teaches second grade and would walk to work. Her husband would drop off their daughter later in the day and Shakira would walk home with her daughter in hand.

The couple had their routine down pat.

That all changed the moment they returned home from the hospital with their newborn daughter Leïla Marinella. A neighbor greeted them with news that after the building's recent purchase by a new landlord in early March, all market rate tenants were to vacate their apartments by the end of April. Shortly after, the Castronovos received notice that they had to be out within five weeks.

The family asked for an extension due to their new daughter's birth, but said that they were told that no accommodations would be made.

So the family embarked on a frantic search for a new apartment. Ultimately, the family moved two miles north to Harlem's Striver's Row on the Sunday that found New York City under a torrent of Nor'easter rain.

The Castronovos are one of 89 families served with eviction notices from UWS Acquisitions, LLC, an affiliate of Avenue Capital, a hedge fund that manages more than $13 billion in assets, based in midtown Manhattan. The company purchased 89 units in three buildings, 65 and 55 West 95th Street and 150 West 87th Street, in March.

Avenue Capital is owned by Lasry. With the exception of one donation to the George Bush-Dick Cheney 2004 presidential campaign, Lasry and his wife Cathy have been longtime Democratic Party financial supporters and bundlers.

Together they donated $20,000 to the Democratic National Committee in 1996. In 2004 and 2005, they donated $50,000 each year to the Democratic Congressional Campaign Committee. And in 2005, they donated $20,000 to the Democratic Senatorial Campaign Committee in August, followed by an additional $50,000 the next month. They have also contributed to various House and Senate candidates across the country, from Iowa to Tennessee.

Both Lasrys maxed out in contributions for the senator's 2000 and 2006 senatorial runs.

Notably, former first daughter Chelsea Clinton was hired by Avenue Capital last November.

The Castronovos find the Clintons' relationship with their new landlord ironic.

"Clinton maintains that she is for a better America and moreover for the middle class worker," Rosario wrote in an email, asking why the New York senator would be affiliated with an organization that sought to "turn many middle class Americans into the streets within 30 days."

Calls and emails to Clinton's presidential campaign office and the Clinton Global Initiative were not returned.

As market rate tenants, Avenue Capital has the legal right to ask the Castronovos and other families to leave within 30 days.

Roxanne Donovan, a spokesperson for UWS Acquisitions, LLC and Avenue Capital, said that the company did not do anything out of the ordinary.

"Any legal notices that were sent to tenants were delivered in a time frame prescribed by law," Donovan said, "which was not unilaterally elected by the landlord."

Tenants with children currently in school were told that they would have until July 31 to vacate "in order to eliminate any disruption to a child's schooling." Tenants with leases expiring on or before May 31 have until June 30 to vacate their apartments. Those who wish to extend their leases under those constraints were advised to hire legal counsel and "enter into a ‘court ordered' Stipulation of Settlement."

But that was too late for the Castronovos. They moved out the day before the letters were mailed.

The family makes what the Drum Major Institute for Public Policy, a non-partisan organization that examines governmental policy, said a group of city leaders say it takes for a family of four to have a middle-class standard of living. And financial stability for middle class families becomes ever more tenuous if those families do not have a consistent home to call their own.

Just last week, City Council Member Gale Brewer's (D-Manhattan) office discovered that 219 West 81st Street had also been purchased by what Donovan, spokesperson for Avenue Capital, described as an "an entity of Avenue Capital." Brewer's office learned of the sale when investigating two complaints against the building for "excessive debris" and "construction- contrary/ beyond approved plans/permits."

The Department of Buildings did not respond to calls about the status of the four buildings.

"The company will continue to acquire properties on the Upper West Side and in other neighborhoods if presented with good opportunities," Donovan wrote in an email, adding that she would not give the number of apartment units that are now owned by the company and its affiliates in the neighborhood.

The tenants who have remained in the three apartment buildings on West 95th Street and West 87th Street have formed a tenant group and retained the legal services of Himmelstein, McConnell, Gribben and Donoghue, a real estate law firm which has been in contact with the office of Attorney General Andrew Cuomo (D).

But Rashmi Vasisht, a spokesperson for Cuomo's office, said that because the buildings were originally converted to coops in the ‘90s, the statute of limitations for the conversion has expired. The time frame allowed is between four and six years.

"Our office is very sympathetic to the situation," she said, "but it appears as non-regulated tenants that they may not have legal recourse at this time."

Regardless of the outcome, Rosario said that he continue in the fight against these types of evictions in the future.

"I may have left my house," he said, "but I am not going to stop fighting for New York, because this is a travesty."

Home > News

The Capitol

Subscribe to City Hall

Powered by: PHPCow.com