Major Developments:
Brookfield extended its ground lease at Brookfield Place for an additional 50 years. The lease is now set to expire in 2119. The extension includes higher ground-rent payments. It is expected to generate $1.5 billion for the city and a joint fund for affordable housing development.The City Council passed a bill requiring master plumbers for basic installations of gas stoves and dryers, which critics argue will increase costs for landlords and homeowners.
Shorewood Real Estate Group is planning a 304-unit mixed-use project at 350 Grand Concourse, which will include a 40,000-square-foot Food Bazaar grocery store and a 60-car parking garage. It is projected to cost $175 million and is expected to be completed by the first half of 2028. It will utilize the 485x program, setting aside 25% of units for affordable housing.
RXR launched the Gemini Office Venture, a $3.5 billion initiative focused on New York City office space. The venture has secured investments from Baupost Group, King Street Capital Management, Criterion Real Estate Capital, Liberty Mutual Investments, and Abrams Capital. Gemini's initial deals in Manhattan include the $1 billion acquisition of 590 Madison Avenue, a minority stake in 1211 Sixth Avenue, and a stake in the Starrett-Lehigh building.
A state judge blocked Michael Shvo's attempt to evict the Core Club from 711 Fifth Avenue. The judge sided with Core Club, citing a memorandum of understanding that restructured payment terms, but ordered the club to continue paying under its 2021 lease.
Development rights transfers in New York City are projected to increase by 39% this year, reaching their highest level since 2016, primarily due to the "City of Yes" legislation.
The "City of Yes" law has significantly expanded the ability of property owners to sell unused development rights. The new legislation has particularly helped landmark air rights transfers, which were previously cumbersome, by simplifying the certification process and increasing the number of potential parcels for transfer.
Compass is to acquire Anywhere Real Estate, the parent company of Corcoran, Sotheby’s International Realty, Coldwell Banker, Century 21, and other major brands. The all-stock merger values the combined entity at $1.6 billion, giving Compass shareholders 78% ownership of the combined entity. The transaction is expected to close in the second half of 2026, with the combined company’s enterprise value estimated at $10 billion.
A task force approved a $3.5 billion plan to redevelop the 122-acre Brooklyn Marine Terminal, including 6,000 apartments (40% affordable), industrial space, a hotel, and open space. This vote advances the project to the environmental review stage. The city, which acquired the terminal via a land swap, seeks to modernize the port, address housing needs, and invest in public/off-site housing.
New York's "Move in NY" program, a $50 million initiative by Governor Kathy Hochul, aims to provide 200 manufactured and modular homes to low- and mid-income families within a year. It offers financing to up to 15 communities to build at least 10 homes each on unrestricted land.
LuxUrban Hotels filed for Chapter 11 bankruptcy, but seems to be offering hotel rooms in closed hotels, prompting emergency hearing requests. The Department of Justice also expressed concerns to the bankruptcy judge regarding wages and consumer protections, as workers reportedly walked off due to unpaid wages.
The Department for the Aging is relocating to 14 Wall Street in Lower Manhattan, signing a 20-year lease for 81,000 square feet.
New York's 2019 rent law, initially believed to doom regulated housing, is now proving true. Landlord experiences, foreclosure data, and watchdog reports confirm a growing crisis. While the government denies the threat, city-managed pension funds invested in rent-stabilized housing have lost over two-thirds of their value since 2019, dropping from $531 million to $165 million.
The CAC has approved the following casinos:
- Metropolitan Park in Queens is an $8 billion proposal next to Citi Field.
- Resort World NYC, Queens: A $5.5 billion expansion of a racino.
- MGM Empire City in Yonkers is an expansion of the existing racino.
- Ball’s Bronx, Bronx $4 Billion casino, the former Trump golf course.
City Skyline Realty is facing foreclosure on nine buildings, comprising a total of 269 units, due to defaulting on debt totaling $55.4 million. Lawsuits filed in the Manhattan Supreme Court allege default on seven buildings in Manhattan and two in the Bronx. The Manhattan properties at risk are 517 West 161st Street, 446 West 164th Street, 1484 Amsterdam Avenue, 537 West 150th Street, 541 West 144th Street, 516 West 136th Street, and 3694 Broadway. The Bronx properties are 1075 Nelson Avenue and 2105 Ryer Avenue.
Following the FARE Act, NYC rental listings decreased by 16-29% (June-August). Rents rose 7-11% annually, partly due to landlords absorbing broker fees and market limitations, which led to increased fee negotiations, potential broker challenges, and higher rents, but no tenant-paid fees.
Rudin filed plans to convert the 21-story office building at 845 Third Avenue in Midtown East into a 411-unit apartment building, a project expected to cost $41.7 million. The conversion will include 9,100 square feet of ground-floor retail space and residential amenities such as a gym, spa, and coworking spaces.
The City of Yes rezoning, which permits additional floors, is part of a broader trend of office-to-residential conversions.
RFR is suing the selling entity of 346 Madison Avenue, led by Claudio Del Vecchio, for allegedly stealing its due diligence. RFR claims confidential data, gathered under exclusivity and confidentiality agreements, was uploaded to a third-party site after its exclusivity expired, allowing SL Green to acquire the property. The lawsuit seeks unspecified damages, with unclear impact on SL Green's development plans.
PropertyScout's analysis indicates 54 development rights transfers in NYC by August 1st, projecting 92 for the whole year, the highest since 98 in 2016. This increase follows the City Planning Commission's relaxation of regulations. Peak periods (2005-2007 and 2013-2016) coincided with rising land prices and an increase in new building applications. 2015 saw the most transfers (134), while 2010 had the fewest (30).
Metro Loft Management and David Werner Real Estate Investments are converting 675 Third Avenue into a 464-unit residential building, which will also feature retail space. Werner acquired the site for $100 million and secured a $90 million loan for the acquisition and predevelopment.
NYC apartment construction has plummeted, with market-rate housing starts down 67% from last year, dropping from an average of 7,500 to 2,500 per quarter. The construction pipeline shrank from 71,000 to 47,000 units. Developers blame the 485x property tax abatement, which replaced 421a, citing labor mandates and affordability thresholds that reduce returns. High construction and land costs, union wages, and interest rates already made building difficult. Office-to-residential conversions are providing some relief, with over 8,300 apartments in the pipeline.
Barclays is preparing a massive overhaul of its regional headquarters at 745 Seventh Avenue. Barclays will begin a $1 billion renovation in mid-2026, concluding in 2030, to update trading floors, technology, and add amenities for 12,000 staff.
Innovation QNS, rezoning is still expected to lead to smaller-scale developments. BedRock Real Estate Partners, in a joint venture with L+M Development Partners, is now advancing a 560-unit mixed-use building at 35-18 Steinway Street. This project will include 45% affordable units. Mandatory Inclusionary Zoning mandates at least 25% of units be affordable at 60% of the area median income.
Trump dangles HUD post to Adams in bid to reshape mayoral race.