Major Developments:
Phipps Houses plans a 497-unit, 377,000-square-foot affordable housing development in the South Bronx at 893-895 East 167th Street. The nonprofit acquired the site in 2019 for $22.5 million and has filed a rezoning application.825 Eighth Avenue, a 1.8 million-square-foot tower, was appraised at $345 million, an 80% drop from its 2017 valuation of $1.7 billion. The property is backed by $940 million in CMBS debt and $260 million in mezzanine financing. The debt went into special servicing after law firm Cravath, Swaine & Moore vacated its 617,000-square-foot space, leaving Worldwide Plaza 40% vacant.
NYCHA seeks private developers to revitalize public housing. Developers could build mixed-income or affordable housing on private sites, relocate public housing tenants, renovate or rebuild vacated NYCHA buildings, and then manage the new public housing. Incentives include development and management fees and reliable Section 8 income. This partnership offers faster development than through the HPD, which has a project backlog. NYCHA provides immediate starts, tools, planning assistance, and potential capital. Meanwhile, NYC evictions have returned to pre-pandemic levels.
New York City evictions have returned to pre-pandemic levels, with marshals removing over 11,200 households this year, averaging 1,500 monthly. This is the fastest rate since 2018, fueled by housing courts clearing a backlog of cases after the 2022 pandemic moratorium lifted. The city has approximately 2.2 million rental units.
The ground lease for 1140 Sixth Avenue, an office building, has plummeted in value by 90%, from $180 million in 2016 to $17.8 million today. At $70 per square foot, it's now cheaper to own the lease than it was to rent in 2012 ($85 per square foot). American Strategic Investment Co. has faced cash shortages and tenant losses. The 20-story building defaulted on the ground lease loan was purchased by Blackstone for about $100 million.
Michael Shvo's firm initiated eviction proceedings against the exclusive members-only club from the former Coca-Cola Building. The developer and the social club are embroiled in legal drama, with Core Club suing Shvo for $600 million in 2024, alleging unmet promises for three club locations.
A federal court judge confirmed a reorganization plan that will result in Tessler turning over the 10 remaining unsold residential and two commercial units at the 72-unit building to distressed debt investor, ArcPe.
City Council's rezoning adjustments highlight the uncertainty of housing projections tied to major zoning changes, with estimates of lost units varying wildly from 141 to 1,000. The Department of City Planning's environmental review identifies potential redevelopment sites, but this doesn't guarantee owner participation. Conversely, some owners keen to redevelop aren't always included in these projections. An example, 554-568 Eighth Avenue, a 21-story vacant office building eyed for residential conversion due to rezoning, was excluded from the new residential district by the City Council.
The Bally's Bronx casino proposal is back on track after Mayor Eric Adams vetoed the City Council's rejection of its zoning changes. The Council did not override the veto, allowing the $4 billion project to proceed with seven other casino contenders. Meanwhile, SL Green Realty reneged on its $22.5 million pledge and 0.5% of annual profits to Manhattan Plaza tenants, now stating the money will go to the West Side Community Fund if they secure a state casino license.
Work stops at Metro Loft’s Pfizer HQ conversion over suspected fire. Authorities responded to reports of smoke at 235 East 42nd Street, NYC’s largest office-to-resi project.
750 Lexington Avenue, the 31-story office building, is continuing its valuation free fall. It was recently valued at just $41 million, less than 14% of its $300 million valuation a decade ago.
One of the country’s biggest apartment owners is pitching a large Manhattan portfolio that would be insulated should Zohran Mamdani follow through on his campaign promise to freeze the rent.
UDR, the Colorado-based multifamily REIT, and its partner MetLife are eyeing up to $500 million for a group of rental buildings around Columbus Circle. Four of the five buildings are free market. The fifth is subject to an older 421a agreement, under which an owner could raise rents by 47% before hitting their legal rent limits.
City Council approved the Midtown South Mixed-Use Plan, rezoning 42 blocks for housing development. This, the city's largest residential rezoning in 20 years, will create 9,535 units, with 2,842 affordable. The plan introduces new high-density residential districts requiring Mandatory Inclusionary Housing and allowing housing projects up to 15-18 times lot size, enabled by the state lifting the 12-story residential floor area ratio cap. The approved plan reduced original unit projections (from 9,700 to 9,500) to address garment business displacement concerns by decreasing residential density in the southeast and reclassifying a northwest high-density area to light manufacturing.
Cirrus Real Estate and LCOR seek to acquire the remaining Pacific Park rail yard development sites and Site 5. Empire State Development confirmed their application to be designated a "permitted" developer for six rail yard sites in the Brooklyn mega development, despite a missed deadline for development rights transfer, leading to another extension and potential late fees.
Slate Property Group and 143-06 135th Avenue conversions to yield at least 1,100 units. Opening including the 318-unit Baisley Pond Park Residences in Queens, converted from a Hilton near JFK, and a 535-unit affordable housing project at the Stewart Hotel in Midtown.
Developer Yitzchok Schwartz is planning roughly 300 condo units at 960 Franklin Avenue, with a projected sellout of $273 million. It will span seven stories and include unit sizes ranging between one- and two-bedrooms.
TF Cornerstone will convert 135 East 57th Street into a 350-unit residential complex. A ground lease with the Wallace family and a tax break facilitate this. The 32-story building will feature market-rate and affordable housing, with 25% of units for those earning up to 80% of the area median income.
Wells Fargo, JPMorgan Chase and Bank of America agreed to originate a $1.3 billion commercial mortgage-backed security for Durst’s 1.8 million-square-foot tower at 151 West 42nd Street. The loan is carrying a 6.1% interest rate.
NYC's broker fee ban, the FARE Act, is disrupting rental data. Since mid-June, new rental listings on local services have plummeted 74% year-over-year (1,400 vs. 5,300), suggesting landlords are using other listing methods as they adapt to the law prohibiting them from charging tenants agent fees.
Northwell Health reduced its proposed 436-foot Lenox Hill Hospital expansion tower to 370 feet to secure City Council approval. The project, now requiring eight years of construction, includes 475 single-bed rooms, an expanded emergency room, and a new mother-baby unit.
RXR scores political support for migrant shelter conversion at a 600-unit campus in Clinton Hill.
New York City's retail sector is bouncing back, largely due to restaurant operators. Quick-service, dessert, and cocktail establishments are rapidly acquiring spaces, pushing Manhattan's retail availability to a 12.8% low.
The City Council’s land-use committee and zoning subcommittee unanimously approved RXR’s rezoning application for the conversion of 47 Hall Street in the Brooklyn neighborhood.
Soho House goes private in a $2.7 billion deal led by MCR Hotels, valuing shares at $9, an 18% premium over Friday's close but below its 2021 IPO price of $14. Yucaipa Companies maintains majority control.
The NYC City Council approved the Midtown South Mixed-Use Plan, rezoning 42 blocks. This is the city’s largest residential rezoning in 20 years, projected to add 9,535 housing units, with 2,842 designated as affordable. This rezoning introduces new residential districts and utilizes Mandatory Inclusionary Housing.
Haussmann plans to develop a 200-plus-unit project at 159-31 90th Avenue for a mixed-use development taking over a stalled KD Sagamore Capital site
NYCHA and Related submitted plans for a 12-story, 217-unit building at 401 West 19th Street in West Chelsea. The 211,000-square-foot property will include a community facility. This follows NYCHA's approved plans to demolish the existing seven-story building.
Kensico plans to convert 509 Madison into a 30-story hotel, featuring 96 rooms, a lobby, and amenity spaces across 139,000 square feet. Additionally, 3,300 square feet of retail space will be included with separate street access from the hotel.
Trump administration eyes aggressive $7 billion Penn Station redevelopment. DOT, Amtrak targets construction to start in 2027 despite no developer in place.
Capstone filed a lawsuit claiming Madison Capital and Vornado defaulted on their debt at 140 Crosby Street when they failed to pay off the loan at its maturity date.
Rosenwach filed an application with the Department of City Planning to rezone the LaGuardia Center at 43-02 Ditmars Boulevard. The plan is to turn the low-rise shopping center into a mixed-use complex with nearly 492 units in a 412,000-square-foot complex that would be between eight and ten stories tall. The proposal also includes a 62,000 square feet of retail on the ground floor.