A wall scribbled with graffiti is all that is left of the strip of local businesses located on 163rd Street and Broadway. The Dominican family-owned restaurant which served the typical arroz con habichuelas y pollo alorno (rice, beans and chicken) lunch for over 40 years, along with the barber shop where hundreds of locals got their haircuts, were left with no choice but to close down. Facing the same issue on the block was Sebastian Income Tax and Multiservices Inc., an agency many would use to send money to their native country and file their yearly taxes.
Now, facing the tough task of starting their businesses all over again, this recurring issue is evidence of gentrification in the neighborhood. Small business owners who once catered to the people of Washington Heights were forced to relocate after the landlord who bought the new property refused to renew their leases.
Fruteria El Buen Camino
One business remains. Fruteria El Buen Camino is the lone fruit market left standing, something even the owner, Thelma Santana, describes as a “miracle.” She recounts how it all happened. “Three years ago, this strip changed landlords, and every couple of months we would get notices saying that our leases would not be renewed.”
After multiple meetings between the business owners and Coltown Properties LLC – the new real estate company who bought the strip – her prayers were answered. Santana’s business would remain, while every other local shop on the block would be shut down.
Jose Campos, owner of Sebastian Income Tax & Multiservices, Inc. describes the relocation situation differently. “We were like little children being bribed with caramel candies,” he said, when recounting how the previous landlord told the business owners their leases would be renewed, only to send them letters to vacate the premises within the month after the properties were sold. In 2012, investors Israel Weinberger and Steven Neuman of Coltown Properties LLC. bought five buildings from the previous landlord for about $31 million dollars, and business owners on the strip quickly saw the changes occurring. As to why Fruteria El Buen Camino is the last business standing, Mr. Campos believes it’s their location that brought them good luck. “We’ve heard rumors about the new lounge and real estate office that will take over where our small businesses once were, and I believe the fruit market’s square footage wouldn’t add or take away from their plans to remodel. In our case, we were on both sides of her business and had a larger space, something they needed to rent at a higher price.”
Sebastian Campos in his new office
Washington Heights has gone through many changes in the last couple of years due to gentrification. With a rise in the non-hispanic population in the neighborhood, the cost of living is rising and as a result, rents for both businesses and apartments are increasing, uprooting locals and forcing them to relocate.
According to the 2010 census, 48.4 percent of the White/Non-Hispanic population is over the $60,000 yearly income range. This is in stark contrast to the Hispanic/Latino population with only 24.3 percent making over that amount, and an average 75.7 percent making under $50,000 in yearly income. Washington Heights has quickly become the new “it” neighborhood due to the now low crime rate and affordable rent by New York City standards. Chain businesses and cafes offering free wifi and espresso lattes are increasing in quantity, leaving the beloved ethnic spots who served the community for years at a loss.
Punta Cana Restaurant stood on this corner for over 40 years
Angel Santos, owner of Punta Cana – The Dominican food restaurant – was paying $7,900 in rent before they closed down, instead of the $5,000 they were accustomed to. “We were told that if we wanted to keep this business, our rent would increase to $9,000 a month. We could barely afford the current rent. Now I’m 80 years old and retired,” says Mr. Santos. He recounts the crime and hardships he faced to open his business 40 years ago, driving a taxi day and night in order to save up to rent the space. In an effort to save his business, Mr. Santos took Coltown Properties, LLC. to court, a case that resulted in the judge’s ruling in favor of the new landlord. Representatives at Coltown Properties, LLC. were not available for comment, but of the case’s ruling, Mr. Santos says “In the blink of an eye, it was gone….we had to struggle here, and now I have nothing.”
With the 18.4 increase in the non-Hispanic population increase in Washington Heights over the last five years, new chain businesses are weeding out the current small businesses in the neighborhood. “We have no small business laws on our side” said Mr. Campos, who also filed a case against the new landlord along with Mr. Santos of Punta Cana Restaurant. “Thankfully we’ve relocated now, but we’re not on Broadway anymore, causing a drastic change in our foot traffic.” Sebastian and his wife remain hopeful that business will pick up, now that they’ve posted their relocation sign where their agency once stood.
Victor Campos- owner of Fruteria El Buen Camino
For Thelma Santos of Fruteria El Buen Camino, the blessings “continue to pour.” The new landlord, Mr. Weinberger, of Coltown Properties, LLC has decided to renovate her entire market, to make the strip more appealing to the public. “It’s more than we could’ve asked for.We thank God everyday” she says. With the help of her husband, Victor Campos, she hopes to remain in the area for years to come, offering the people of Washington Heights fresh, local produce.
For Punta Cana Restaurant and Sebastian Income Tax & Multiservices, Inc. the situation ended differently. In the midst of gentrification, Washington Heights is a neighborhood changing right before residents’ eyes. The beloved local spots are rapidly disappearing, and being replaced with mainstream shops and restaurants. The increase in income and non-Hispanic population has been a crucial factor in causing the gentrification, changing Washington Heights from a predominantly Caribbean population to a more diverse one. When asked what their thoughts were on the events happening in the neighborhood, all the small business owners had a similar opinion – change is always welcome, but Washington Heights is no longer the same neighborhood they once knew.