Here we go.
Mayor Zohran Mamdani’s first week has been eventful for the real estate sector, 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 president of the city council during the first meeting of the city council. Most important is whether she will override former Mayor Eric Adams’ vetoes of the Community Opportunity to Purchase Act and a trio of housing regulation bills. Menen has said the Council is considering its options.
In her first speech as speaker, Menin said the City Council will issue its own housing plan, looking to redevelop the city’s libraries to include housing (as was done with the Sunset Park Library) and convert them to city-owned land.
During her speech, Menen also noted that the first Muslim mayor and the first Jewish president of the Council are serving at the same time.
“This moment is truly historic,” she said. “But what this interfaith leadership will write in the history books is if it can be an opportunity for all of us to come together – to calm tensions, to bridge divisions and to recognize that we are one city, regardless of the religion we practice or the language we speak.”
In Albany, the legislative session began 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 running for re-election and will face pressure from the left to support tax increases for the state’s wealthiest, which is crucial to financing Mamdani’s key campaign promises. She also faces a Republican challenger who will likely emphasize the need to stop the new mayor’s agenda.
Industry folks don’t seem to have much hope that changes to 485x are on the table this year. Landlord groups have previously pushed for legislation that would allow one-time rent reviews for vacant, stabilized apartments, though lawmakers have shown little appetite for that. Mamdani, however, has expressed support for property tax reform and alternative insurance models as ways to address ownership costs.
What we’re thinking about: Will Hochul include anything on property tax reform or other measures to address operating costs in rent-stabilized buildings? Send a message to kathryn@therealdeal.com.
Something we learned: Open New York opposes 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 opportunities. The designations are awaiting approval by the city planning and city council.
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 and State Reports. Assemblymember Amanda Septimo, who currently represents the district, is challenging Rep. Ritchie Torres.
— As part of her State of the State priorities, to be announced next week, Governor Kathy Hochul will propose new restrictions on 3D printed guns and other illegal firearms, Spectrum News reports.
— And in news that wasn’t 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 highest housing deal recorded on Wednesday was $9.1 million at 56 Crosby Street. The Soho apartment unit is 4,000 square feet. It last sold in 2010 for $4.4 million.
Commercial: The best recorded commercial deal was $237.5 million for 1540 Broadway. Buyers BDT & MSD Partners are reportedly $150 million invested in amenity packages for the 907,000-square-foot office building.
New on the market: The highest price for a home to hit the market was $18.5 million for 205 Clinton Street. The Cobble Hill mansion is listed by Compass’ Lindsay Barrett, Taylor Schultz and Christopher Mohr.
Groundbreaking: The largest new building permit submitted 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 registered applicant.
— Joseph Jungerman
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