City-Spaces’ 803 Ninth Avenue office (photo: Loopnet)

City-Spaces, a real estate brokerage that failed to pay employees during the real estate
downturn and then changed the firm’s name to gloss over that fact, has closed its doors.

In March, founder Israel Horowitz shuttered the firm’s one remaining office, at 803 Ninth
Avenue in Midtown, and said goodbye to his last 20 employees. At its peak, the firm,
which was founded in 2005, had four Manhattan offices and 150 employees, Horowitz
said.

The reason for the closing had to do with the $10,000-a-month rent for the Ninth Avenue
storefront, which was too steep, Horowitz said. But the nail in the coffin was an
investigation launched recently by New York’s Department of State, in Albany, which
regulates brokers’ licenses. [more]

Citi-Spaces has closed its East Village office at 174 Second Avenue, as well as its HQ at 55 West 39th Street.

More details have emerged about embattled residential real estate firm
Citi-Spaces since The Real Deal reported closure of its East Village
office yesterday. Company founder Israel Horowitz revealed today that the company has
faced serious cash-flow problems, including bouncing checks to agents,
and has closed not one but two offices in recent months. Horowitz
confirmed yesterday that Citi-Spaces had closed its biggest office, in
the East Village, but revealed today that it also closed its corporate
offices at 55 West 39th Street several months ago. The company has been
widely rumored to be ceasing operations, which Horowitz has denied. [more]

Citi-Spaces yesterday closed one of its four offices, according to
company founder Israel Horowitz, who squelched pervasive rumors that
the 60-agent company is folding. “I never thought of closing,” Horowitz said, adding that he, too, has
heard rumors of the company’s shuttering from agents interviewing with
the residential sales and rentals brokerage. The perception is so
widespread, he said, that four different firms have approached him in
recent months with offers to buy or merge with Citi-Spaces. “I was considering it, but a merger didn’t make sense,” he said. “What
made sense was to get rid of the office that was causing the headaches.” That office was Citi-Spaces’ East Village branch at 174 Second Avenue,
between 11th and 12th streets. The 27-agent storefront branch opened
eight months ago, just as the city was descending into the financial
turmoil, at a rent reflecting the previous hot market, he said. [more]