by Arvind Dilawar

Seraphim Equities already owns nearly 5% of the city’s rental units.

Photo Credit: Princeton University Press

The City of Newburgh is only four square miles and, according to the most recent Census data, includes fewer than 7,400 rental units. Seraphim Equities, a Long Island-based private real estate investment firm, owns nearly 300 of those units — almost 5% of the total — per public property records reviewed by A Little Beacon Blog. The purchases are part of Seraphim's strategy to corner the rental market in Newburgh — of which the firm hopes to control at least 30%, as reported by sociologist Richard E. Ocejo in his recent book Sixty Miles Upriver: Gentrification in a Small American City.

Seraphim Equities is a real estate investment firm based in Great Neck, Long Island.

224 Broadway, Newburgh, NY
Photo Credit: Google

Since 2018, Seraphim has purchased properties throughout Newburgh, all under various limited liability corporations similarly named “Newburgh SHG.” Following some of those acquisitions, the firm took legal action against the remaining tenants, such as in 2020 when “Newburgh SHG 15” — the LLC which owns 224 Broadway — filed non-payment proceedings against three different defendants, per public court records. Read more about that here at Chronogram’s The River. In 2021, Seraphim also attempted to organize a festival in Newburgh called Hudson Valley Hype in partnership with Fidelity Management Group, which was cancelled after locals criticized it as a ploy to market real estate.

The Mural at 224 Broadway in Newburgh that Seraphim Equities commissioned to artwash displacing residents.
PHoto Credit: Celebrate845

Celebrate845 dedicated a page to it, explaining: “The company bought up an astounding amount of property in Newburgh New York when the COVID-19 pandemic hit and states on their website that ‘Newburgh re-emerges with a major revitalization movement fueled by an existing and growing artist community, non-profit organizations, and ambitious yet socially conscious developers, making Newburgh a city worth exploring.’ Seraphim is taking advantage of Newburgh by hoarding housing during a pandemic, flipping properties, and then using the creative community as a means to increase property values, ultimately displacing creatives and other long time residents, many of whom are low income BIPOC.”

(Seraphim failed to respond to multiple requests for comment from A Little Beacon Blog.)

For Sixty Miles Upriver, which was published in 2024, Ocejo interviewed Seraphim leadership and employees, who told him of their plans of “owning up to 30% of all rental units,” as he writes in his book. In an interview with A Little Beacon Blog, Ocejo further describes the firm’s operations in Newburgh.

“Companies like Seraphim manage an investment fund to purchase and rent out a large number of properties or speculate and sell them for profit,” says Ocejo. “The model is based on using investors' investments to acquire properties and generate income from escalating property values and rents.”

By soliciting outside investment and focusing it on markets like Newburgh, which are small and on the upswing, but still relatively depressed, Seraphim is able to gain control of a greater share of rental units and thereby demand higher rental prices. That higher rent compensates both the firm and its investors for their respective investments, and everyone is happy — except, of course, for renters. In Newburgh, where 69% of residents rent and 61% of renters are already cost-burdened, Seraphim cornering the market means renters are likely to see greater financial hardship and displacement, either via eviction or simply being priced out of their homes.

Indeed, Seraphim is not shy about its method, which they placed prominently on their website homepage: “Seraphim Equities developed a city feasibility reporting system that algorithmically identifies cities and neighborhoods that are equipped for a holistic rejuvenation movement. Seraphim Equities leverages the expertise of its team to devise compelling business plans that combine real estate speculation and stabilization with capital markets partnerships to successfully develop cash-flowing portfolios of 1-4 family and mixed-use properties for acquisition by private equity firms and institutions.”

“With enough investors, a company like Seraphim can purchase a lot of rental properties in a market and contribute to unaffordable rents and fewer ownership opportunities for smaller actors,” says Ocejo. “When rental housing gets connected to financial markets, and the expectation is a continuous rise in value from rent and property appreciation, low-income people in high-poverty places like Newburgh suffer the most.”

Arvind Dilawar is an independent journalist. His articles, essays and interviews have appeared in The New York Times, Time Magazine, The Daily Beast and elsewhere. Find him online at: adilawar.com