Major Developments:
Mayor Eric Adams appointed two new members and reappointed two others to the Rent Guidelines Board, to undermine Mayor-elect Zohran Mamdani's campaign promise to freeze rents for stabilized tenants for four years. The new mayor will be able to replace four of the nine board members upon taking office, and the remaining five Adams appointees could be replaced in 2027.Kensico Properties officially began the seven-month Uniform Land Use Review Procedure to convert the 21-story office building at 509 Madison Avenue into a 30-story luxury hotel. The proposed hotel will have 96 rooms. The project, which began interior demolition, aims to start construction next year and wrap up in early 2028.
SL Green is planning to sell roughly $2.5 billion worth of property, including nine office and residential buildings in Manhattan. SL Greens targets more than $1 billion in acquisitions next year. Properties include 1350 Sixth Avenue, a 25 percent stake in 245 Park Avenue, and a 65 percent stake in the 750 Third Avenue conversion.
In March, the city issued an RFP for a conversion at 100 Gold Street. The NYC Economic Development Corporation selected GFP Real Estate to redevelop the office building into a mixed-income residential building. The plan includes an increase from 2,000 to 3,700 units. At least 25% of the units must be affordable.
The New York Gaming Commission has approved casino licenses for the three remaining proposals in New York City, concluding a multi-year competition.
The winners are Steve Cohen’s Metropolitan Park near Citi Field, the complex at Bally’s Golf Links at Ferry Point, and Resorts World’s expansion of the Queens Aqueduct.
The projects are expected to generate $7 billion in incremental gaming tax revenue from 2027 to 2036. However, a state board voiced concerns about whether the developers would meet all their financial and project commitments.
Dynamic Star and three affiliates filed for Chapter 11 bankruptcy, halting a scheduled December 2 foreclosure auction of their multi-billion-dollar mixed-use Fordham Landing megaproject on the Harlem River. The larger, north phase plans 2.7 million square feet of development, including housing, office, and retail. Zackson stated in the filing that zoning approval will secure a new investor. The south phase, with 900 affordable units, was expected to be completed next year after securing $55 million in state funding for infrastructure.
A judge dismissed the lawsuit filed by Pierre Hotel residents, including Tory Burch, who opposed a secretive $2 billion sale of the Fifth Avenue property.
The complaint was deemed moot because the building’s board increased transparency by turning over a non-binding term sheet and three years of board minutes.
The $2 billion sale is still under consideration, but the board is also reviewing an alternative offer from longtime operator Taj Hotels that would involve a capital investment.
The City Council advanced a new version of the Community Opportunity to Purchase Act (COPA). This version applies to a smaller scope of multifamily buildings and reduces the exclusivity window for city-approved nonprofits to bid on properties from 135 days to 105 days.
A package of housing bills, estimated to increase the Department of Housing Preservation and Development’s budgetary needs by $1.3 billion, advanced. These bills include new requirements for city-funded housing, such as mandates for greater affordability for extremely/very low-income households and minimum percentages for two- to three-bedroom units.
The union-backed Construction Justice Act, which requires a $ 40-per-hour minimum wage and benefits for construction workers on city-funded housing projects, also advanced, despite estimates that it would add $750 million to HPD's production costs.
Contract signings for New York City's new development projects dropped 22 percent in November compared to the previous year, continuing the sector’s fall performance, which has lagged the city's overall surge in contract activity.
The primary cause for the decline is a shrinking supply of available new development units, with Manhattan's inventory reaching a 10-year low.
All boroughs saw a slowdown, with new development contracts falling in Manhattan, Brooklyn, and Queens. The top-selling project in Manhattan was Izaki Group's Village West at 525 Sixth Avenue.
Despite state board concerns, three NYC casino proposals—Metropolitan Park, Bally’s Bronx, and Resorts World New York City were recommended for state licenses and now head to the Gaming Commission. The bids, which included plans for hotels and entertainment, differed in license terms: 20 years for Metropolitan Park and Resorts World, and 15 years for Bally’s. Final licenses are expected by the end of December.
The Chetrit Organization restructured its $151.5 million CMBS loan on 65 Broadway (355,000 sq ft), extending the maturity by three years. Chetrit injected new equity, subordinating some debt.
RXR is eyeing the Financial District for office-to-residential conversions, filing plans this week to convert one floor of 61 Broadway into 21 apartments.
The New York City Council amended the Community Opportunity to Purchase Act (COPA), limiting its application to multifamily buildings with four or more distressed units or those with expiring affordability requirements. The changes also set a consecutive 135-day settlement timeline and broadened the definition of "qualified entities" to include for-profit companies partnered with nonprofits.
Vigorous activity continues in the New York City luxury real estate market, fueled by significant year-end bonuses and high profits on Wall Street.
The New York Attorney General’s office and the Division of Housing and Community Renewal sued Peak Capital Advisors, accusing the firm of illegally deregulating over 150 rent-stabilized units across 30 properties in Queens and Brooklyn.
Cannon Hill Capital Partners and TriPost Capital Partners formed a partnership to acquire distressed office properties, non-performing loans, and rescue capital across the Northeast corridor. They are targeting up to $1.5 billion in acquisitions and deal sizes exceeding $50 million.
Slate Property Group, Xenolith Partners, and Comunilife will develop "La Ostra," a 625-unit affordable housing project at 4095 Ninth Avenue in Inwood. The two buildings (15 and 25 stories) will offer 224 units for seniors and 401 units for Extremely Low & Low-Income Affordability (up to 80% AMI).