Major Developments:
- An arbitrator issued a $46.9 million award against Michael Stern and JDS for diverting insurance proceeds and failing to account to lender Silverstein Capital Partners for loan advances related to the Brooklyn Tower project.
- Developer Steve Wynn and former Commerce Secretary Wilbur Ross, along with his wife, Hilary Geary Ross, filed a lawsuit challenging New York state's tax on second homes valued at $1 million or more. A group of homeowners represented by Randy Mastro filed a lawsuit arguing that the tax unfairly targets non-residents in a "textbook example of a discriminatory state law."
- New York Mayor Zohran Mamdani's proposal to recognize tenant unions highlights a key shift that landlords and policymakers should consider, fostering a sense of importance and influence in shaping tenant rights. The administration may draw on models enacted in the Bay Area, which require landlords to meet with tenant associations in "good faith."
- Rockefeller Group and Atlas Capital Group plan a 28-story, 340-unit development at 200 West 97th Street, demonstrating active investment and growth.
- Manhattan Judge Brendan Lantry reserved a decision on a landlord lawsuit attempting to overturn NYC's rent freeze on nearly 1 million rent-stabilized apartments. Landlords' attorney Randy Mastro termed the Rent Guidelines Board (RGB) process a predetermined "sham" driven by Mayor Zohran Mamdani. RGB counsel defended their data-driven process, while the judge sought clarity on data weighting. Lantry signaled skepticism over the RGB's vote freezing rent-stabilized leases ahead of the Oct. 1 effective date.
- The City Council is advancing legislation to raise SCRIE and DRIE rent-freeze income limits to $75,000. Judge Brendan Lantry granted discovery allowing Randy Mastro's team to inspect communications between the Mamdani administration and the Rent Guidelines Board.
- Manhattan's new development inventory hit a 12-year low of 2,800 units in late August. New development contracts fell 26% year over year from April to September, while resale condo contracts rose 12%. Demand for condos remains strong despite the supply shortage.
- StreetEasy barred brokerages holding over 20% market share from its Experts program, affecting Compass, Corcoran, and Sotheby's. The move retaliates against Compass for prompting agents to pull listings from StreetEasy, an action its general manager labeled "artificial scarcity" and "gatekeeping."
- Attorney General Letitia James shut down Basic Group and barred architect Kevin McCray from Department of Buildings work for filing fraudulent permits.
- New York City's Industrial Development Agency postponed a vote on a proposed $100 million tax break for Tishman Speyer's $2.7 billion tower at 99 Hudson Boulevard. The tax abatement package includes $92.2 million in city benefits for the planned 48-story, 1.3-million-square-foot development. Local leadership raised questions regarding how PILOT payments will support infrastructure.
- Across the River, Realty Development is planning a 20-story, 402-unit mixed-use complex at 31-29 Vernon Boulevard in Astoria. The proposed 380,000-square-foot project requires a zoning change and will set aside 25% of units as affordable housing.
- Legion Investment Group and SMA Equities are partnering to develop a 300,000-square-foot residential building on the corner of East 84th Street and Third Avenue.
- Average 30-year fixed mortgage rates above 7% are slowing NYC home sales under $5 million, though all-cash luxury buyers sustain activity in the high-end market. Tax abatements expiring by 2030 threaten higher taxes for 66,000 NYC units, while the end of 421a benefits imperils rent stabilization for over 40,000 tenants.
- The Landmarks Preservation Commission unanimously approved a 20-story, fully affordable residential building at 257 Canal Street, developed by Alembic Community Development and The Children's Village.
- Bally's Corp. secured a $560 million loan from WhiteHawk Capital Partners for its $4 billion casino and entertainment complex project in the Bronx, New York.
- NYC Comptroller Mark Levine is deploying $300 million from municipal pension funds into the AFL-CIO Housing Investment Trust.
- ZD Jasper has launched sales at the Paragon, a 182-unit waterfront condo project at 45-40 Vernon Boulevard in Long Island City, with a projected sellout exceeding $300 million. 30% of the units are presold.
- Marriott International and SomeraRoad are transforming the historic Hotel Bossert in Brooklyn Heights into the 50th standalone Ritz-Carlton Residences. The 14-story project will feature luxury condos with Ritz-Carlton services.
- The city and state AG helped steer a bankruptcy process toward IMPACCT and away from two other bidders, both for-profit entities offering double the cash.
- Nearly 7% of more than 9,100 rented apartments offered tenants one to four months of free rent in Manhattan, Brooklyn and Queens.
- The proposed legislation, including COPA and the revival of J-51 tax breaks, aims to support non-profits and tenant groups and encourage property owners to see these policies as opportunities for strategic adaptation. Officials are also exploring office-to-residential conversions and digital building registration to support housing goals.
