Major Developments:
Zohran Mamdani's "rent freeze" promise, though popular, isn't directly within the mayor's power. Rent increases are set by the nine-member Rent Guidelines Board, which votes on June 30. Landlords view this promise as an abuse of power.Westshore Views LLC seeks to rezone 4302 Westshore Avenue, Gravesend, a 737,000 sq ft waterfront site near Gravesend Bay, Calvert Vaux Park, and Shore Parkway. The proposed 1.5 million sq ft project comprises 1,457 residential units (430 of which are affordable), 80,000 sq ft of community space, 143,000 sq ft of open space, and 1,000 parking spaces. Robert Konig signed the application.
The City Council voted to approve changes to a 2009 rezoning of the Western Rail Yards, allowing for a development that could include up to 4,000 housing units, an office building, a hotel, and a 6.6-acre public park. Related has indicated the units will primarily be rentals. The Adams administration announced that the developer had committed to a minimum of 625 affordable apartments, up from 400, for the affordability requirements of the property tax break 485x.
New York City’s Department of Social Services is set to end City FHEPS which gives owners a month’s rent as processed FHEPS applications.
The Metropolitan Transportation Authority filed a petition in Manhattan’s state Supreme Court to begin eminent domain proceedings against 10 sites in East Harlem. The MTA is looking to seize and demolish the sites, clearing the way for two subway entrances on East 116th Street.
Mayor Eric Adams’ administration quietly signed a $929 million contract extension with the hotel industry to occupy space for emergency shelters. There are roughly 86,000 homeless individuals and asylum seekers in the city. It costs $352 per night to house someone in an emergency shelter.
Ashkenazy Acquisition raised $750 million in funds to purchase retail and hospitality acquisitions over a two-year period, seeking properties with overleveraged owners selling at deep discounts.
REBNY appeals Judge Ronnie Abrams’ dismissal of its preliminary injunction against the FARE Act, which mandates that landlords pay rental broker commissions if a listing broker is hired. Post-ruling, over 1,000 StreetEasy rental listings disappeared within hours.
New York City’s Department of Transportation signed a lease for 212,000 square feet at 47-25 34th Street in Long Island City. NYC DOT will use the space to store vehicles and equipment, as well as for administrative offices. The 343,000-square-foot building is approximately 78% leased.
Median Manhattan rent reached a new record high in May at $4,571 per month, representing a nearly 8% year-over-year increase.
Fulop submitted plans for a 12-story, 119-foot, 76,000 sq ft, 120-unit development at 1445 Fulton Street. The current plan includes 80 units in this building, with 40 units on adjacent lots or via air rights.
BFC on the development at 1709 Surf Avenue. The city is providing $90 million in subsidies for the project Coney Island Phase III, and the New York City Housing Development Corporation is issuing bonds to support a $116 million construction loan. The latest Coney Island development will feature 420 units, all affordable.
New York City has 8,300 residential units in the pipeline that are being converted from office space, which are currently under construction or planned. There are more than 15,700 units in the city being converted from all building types.
Mayor Eric Adams launched a program to streamline the conversion process in the city. One project is Metro Loft Management’s conversion of Pfizer’s former headquarters into a multifamily building with 1,500 apartment rentals.
The City Council voted to approve changes to a 2009 rezoning of the Western Rail Yards, allowing for a development that could include up to 4,000 housing units, an office building, a hotel, and a 6.6-acre public park. Related has indicated that the housing units would primarily be rental. The developer had committed to a minimum of 625 affordable apartments.
The New York Blood Center has yet to build on 310 East 67th Street, despite the rezoning receiving City Council’s in 2021.
Fannie Mae releases Madison Title said it has been reinstated as an approved vendor by Fannie Mae after the firm was placed on Fannie’s blacklist over a year ago.
The city’s lien sale is on for June 3rd. The last lien sale was in December 2021. The City Council introduced an "Easy Exit" initiative. Offering an off-ramp for specific one- to three-unit properties and condos. The Easy Exit allows owners to remove their property from the lien sale up to three times within a 36-month period. Owners have the option to choose foreclosure, which would transfer their property to an approved nonprofit organization.
Extel detailed his plans for a residential tower at the site of the former ABC campus, where it is planning a 1,200-foot building on Columbus Avenue between 66th and 67th streets. Including more than 100 affordable housing units across two smaller buildings to appease community members.
The $399 million loan tied to 1440 Broadway went into special servicing again. QSuper purchased the building in 2017 with CIM Group. By 2023, the loan backed by the property landed in special servicing. Investors sold the March 2024 maturity date back to October 2025, replaced CIM with StepStone LP and brought on a new property manager.
NYCHA received $231 million in financing for the overhaul of the 877-unit Eastchester Gardens. Most of the 30-year funding came from Merchants Capital, consisting of $221.7 million through a Freddie Mac Capital Markets Execution loan.
Parcel E, 54-42 Second Street, is planned for a multi-building complex. 60-70% of units must be income-restricted, with rents capped at 120% of area median income. This increases affordability and unit count from previous Hunter’s Point South phases. The 875,000 sq ft project includes ~850 housing units, 230 parking spots, 20,000 sq ft retail, and 16,000 sq ft community space. Proposals with child care/early childhood education centers are preferred. Submissions are due early September.
The Dermot Company has 100,000 square feet to lease at 20 Exchange Place. “Life and Trust” shut down abruptly in April and abandoned the space.
Hassanal Bolkiah, the sultan and prime minister of Brunei, is in talks to buy the Pierre Hotel at 795 Fifth Avenue. The hotel is owned by its shareholders and has been leased to Taj Hotels.
Bolkiah is partnering with Essam Khashoggi on the proposal.
AVRS was revealed to be Vanbarton’s financial backer on the conversion of the Archdiocese of New York’s office building in Sutton Place after the church filed a disclosure in New York supreme court, a 420-unit project at 1101 First Avenue. AVRS is also one of the financial partners on Vanbarton’s 600-unit conversion of 77 Water Street.
The New York City Council’s public housing committee grilled NYCHA officials during a hearing. This comes at a time when New Yorkers are facing a housing crunch and affordability crisis. There are 240,000 on the waitlist for a NYCHA traditional apartment, yet 8,600 units are empty and need substantial repairs and those being converted to community uses.
A big problem for NYCHA is the inability to quickly fill vacated units. It took an average of 423 days to turn over apartments. NYCHA puts the average turnaround time at 350 days, still nearly a year citing extensive upgrades required when a unit frees up.
Housing Preservation and Development released a request for proposals for a 70,000-square-foot parcel within the 30-acre site, Divided into seven parcels, five parts of Hunter’s Point South have already been developed as the neighborhood takes shape.