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Now, he said, they bring no less than five times the rent roll.
Those whose rent rolls dropped could not afford them either.
The lower the rent roll, the higher the multiple in the same location.
They survived through the sheer size of their rent rolls.
They say that the rent roll from the tenants will more than cover their mortgage costs.
Paterno said that the annual rent roll was $1.2 million.
Building values at present are often no higher than one-and-a-half-times the annual rent roll.
"They pay 30 percent of their rent roll in taxes, including water and sewer.
The rent roll, required to be submitted annually, was filed only once before 1995.
"You don't see how they can work themselves out, with the debt load and the rent rolls.
Merely determining what the correct legal rent roll should be has been a problem in the takeover process.
THE prices that make this approach possible are four to five times the annual rent rolls, he said.
A man in a gray suit wanted to know whether 11 times the rent roll was a rule of thumb for purchase price.
"I suppose, of course, high rank requires a large rent roll.
"As long as you can buy property at under four times the rent roll, it will show a bottom line," he says.
While the prime force behind makeovers is the quest for higher rent rolls, there are often side benefits.
"There were all these abandoned buildings that were holding down my rent roll," he recalled saying to himself.
By imputing a rent roll to the property, its approximate value as a rental can be estimated.
Low turnover in the most desirable locations suppresses their rent rolls relative to market values.
He buys an estate and builds up his rent rolls, and lo!
Yet without a larger rent roll to support borrowing for new investment, many of the single-room-occuppancy buildings are almost sure to deteriorate.
After more than a year of legal proceedings, Ms. Jones was given control of the house and the rent roll.
Lenders dislike them for similar reasons, in that if they must take possession and resell, a high rent roll is a great asset.
With a large clientele of low-income people (a third are on public assistance), it is unlikely that rent rolls can be substantially raised.
With 1.8 million square feet available in the two towers, the rent roll should come to more than $70 million a year at current Manhattan rates.