The dispute over a loft at 36 Greene Street in Soho reflects a long-running tension in New York real estate, where the evolution of neighborhoods and regulatory frameworks can create unexpected winners and losers.
The building’s owners—architects Antonio Morello and Donato Savoie, along with artist Theodosius “Ted” Victoria—bought the property in 1977 for $75,000. At that time, Soho was an industrial area considered undesirable by many. Over decades, as the neighborhood became highly sought after, the building’s value rose sharply; it is now estimated to be worth around $15 million.
Initially occupying their own units, the owners registered the building with the city’s Loft Board in 1983 following passage of New York’s Loft Law. This law allowed certain tenants to remain in former industrial spaces while requiring landlords to bring buildings up to code for residential use. It also locked in low rents for regulated tenants but permitted deregulation if landlords bought out occupants.
Despite having two architects among them, the owners never completed required renovations or secured a certificate of occupancy. This left them vulnerable under city regulations and set the stage for recent events.
In 2020, Alexander Riguardi—a commercial real estate broker and son of JLL New York region chairman Peter Riguardi—rented Apartment 3 on the third floor for $7,250 per month. His father guaranteed his lease. The unit had not been previously deregulated nor were its tenants registered with authorities as required by law.
When owners recently decided to sell the now-valuable property and served Riguardi notice not to renew his lease, he sought legal advice. With help from attorney Gregory Byrnes, he applied for protected status under loft tenant regulations just before his lease ended. If granted by the Loft Board—a likely outcome given existing rules—Riguardi could see his rent reduced dramatically to possibly $600 per month based on historic rates from when the building was first registered.
Protected status would also entitle him to reimbursement of most rent paid during his tenancy and allow him or even his descendants long-term rights to remain in place at below-market rates after legalization. Meanwhile, until a certificate of occupancy is obtained—a process that could be delayed further—the law allows such tenants to live rent-free.
The landlords’ attorney has argued against granting protected status due to Riguardi’s late arrival compared with original intended beneficiaries of these laws and questioned whether he met residency requirements. However, precedent suggests such arguments may not prevail because regulations focus on procedural compliance rather than intent or means of tenants.
With eviction off the table unless a substantial buyout is negotiated (reportedly close to $4 million), one person familiar with negotiations described this scenario as “legal extortion.” They added: “It’s fundamentally unfair for who he is.”
Real estate observers note that while this result may seem inequitable given Riguardi’s background and resources compared with those who typically benefit from tenant protections, it arises directly from lapses by ownership over several decades: they failed both to legalize their property and maintain proper tenant records as mandated by law.
As one executive put it: “I can’t for the life of me figure out why someone didn’t give them guidance … to make sure their paperwork was all in order.” Another noted that since 36 Greene Street sits within a residential zone (R7X), owners could have deregistered it from loft regulation at any point over forty years if they had secured proper documentation.
Now faced with either negotiating a costly settlement or enduring prolonged uncertainty about their ability to sell at full market value due to regulatory constraints tied back to decisions made—or avoided—decades earlier, the original owners confront challenges familiar across much of Manhattan’s evolving real estate landscape.
