661 Flatbush Ave. (near Hawthorne)
Brooklyn, NY 11225
Coming soon 4/1!http://myspacenyc.com/listings/
Their business model is to be the realtor of choice for LLCs which have recently purchased small to medium-sized buildings.
Vacancies are then created by paying off (and/or pushing out) long-term, often rent stabilized, tenants.
Once apartments are vacant, quick renovation jobs are completed, which cater to the preferences of young people (ie stainless steel appliances, IKEA cabinets and closets, and exposed brick).
The apartments are then rented to young people who are renting their first place in the city, and often willing to share the units with others.
By creating bedrooms, being willing to accept shares and even facilitating matches, the apartments are often filled "room by room" by tenants who need an apartment quickly and don't own a lot of stuff.
As a result of working closely with LLCs who flip buildings, MySpace is willing to charge the new tenants "no fee". Whereas many realtors who target more established tenants, charge a fee to fill apartments in buildings they have no relationship with.
By being willing to accept lease guarantors (usually the parents), the firm houses young people with no established work history who are often willing to live in neighborhoods that their slightly-more-established-in-NYC peers shun.
By targeting young tenants, the firm can be assured regular turnover which results in vacancy bonuses to apartments that are still subject to rent stabilization.
A very powerful, efficient, profitable model.
...driven by demand.
And, often completely legal.
It only works in neighborhoods that are very close to more expensive, more desireable areas.