Here we go.
Mayor Zohran Mamdani’s first week in office has been eventful for the real estate industry, to say the least. With the start of the state legislative session and the first meeting of the new City Council, things are about to get more interesting.
As expected, Julie Menin was elected City Council speaker during the Council’s first meeting. Top of mind is whether she will move to override former Mayor Eric Adams’ vetoes of the Community Opportunity to Purchase Act and a trio of housing regulation bills. Menin has said the Council is considering its options.
In her first address as speaker, Menin said the City Council will release its own housing plan looking for opportunities to redevelop the city’s libraries to also include housing (as was done with the Sunset Park library) and to build on city-owned land.
During her speech, Menin also noted that the first Muslim mayor and first Jewish speaker of the Council are serving at the same time.
“This moment truly is historic,” she said. “But what will write this interfaith leadership into the history books is if it can act as an opportunity for all of us to come together — to calm tensions, to bridge divides and to recognize we are one city, no matter the religion we practice or the language we speak.”
In Albany, the legislative session kicked off Wednesday, and in less than a week, Gov. Kathy Hochul is expected to lay out her agenda in the State of the State. Hochul is up for re-election and is going to face pressure on the left to support tax increases on the state’s wealthiest, which is key to funding Mamdani’s key campaign promises. She’s also up against a Republican challenger likely to emphasize the need to stop the new mayor’s agenda.
Industry folks don’t seem to have a lot of hope that changes to 485x are on the table this year. Landlord groups have previously pushed for legislation that would allow one-time rent resets on vacant stabilized apartments, though lawmakers have shown little appetite to do so. Mamdani has voiced support for property tax reform and alternative insurance models, though, as ways to address owner costs.
What we’re thinking about: Will Hochul include anything about property tax reform or other measures to address operating costs in rent-stabilized buildings? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Open New York is pushing back against the Landmarks Preservation Commission’s recent designation of Beverley Square West and Ditmas Park West as historic districts. The Yimby group argues that the designations unfairly exempt the areas from the City of Yes for Housing Opportunity. The designations await review by City Planning and City Council approval.
Elsewhere in New York…
— Christina Cover, a public school teacher and DSA member, is considering running for Assembly District 84 in the South Bronx, City & State reports. Assembly member Amanda Septimo, who currently represents the district, is challenging Rep. Ritchie Torres.
— As part of her State of the State priorities, which will be announced next week, Gov. Kathy Hochul will propose new restrictions on 3D-printed guns and other illegal firearms, Spectrum News reports.
— And in news that was not on my bingo card, President Donald Trump announced Wednesday that he plans to block institutional investors from buying up single-family homes.
Closing Time
Residential: The top residential deal recorded Wednesday was $9.1 million at 56 Crosby Street. The Soho condo unit is 4,000 square feet. It last sold in 2010 for $4.4 million.
Commercial: The top commercial deal recorded was $237.5 million for 1540 Broadway. Buyers BDT & MSD Partners are reportedly investing $150 million in amenities packages for the 907,000-square-foot office building.
New to the Market: The highest price for a residential property hitting the market was $18.5 million for 205 Clinton Street. The Cobble Hill townhouse is listed by Compass’ Lindsay Barrett, Taylor Schultz and Christopher Mohr.
Breaking Ground: The largest new building permit filed was for a proposed 68,813-square-foot, 13-story, mixed-use building at 7-45 Wyckoff Avenue in Ridgewood. Kao Hwa Lee Architects is the applicant of record.
— Joseph Jungermann