Tariffs Take Center Stage
A new round of U.S. tariffs, announced under the “Liberation Day” initiative, has real estate markets on pause. The federal government enacted a 10% blanket tariff on all imported goods, alongside sharply higher rates for select countries: 34% for China, 46% for Vietnam, and 20% for the European Union. While the long-term impact is still playing out, developers and investors are watching closely, particularly around construction costs and foreign capital flows.
The uncertainty has led to a quieter-than-usual day in New York City real estate activity, as many players wait to see how markets respond.
Adams Case Permanently Dismissed
A federal judge has permanently dismissed the corruption case against Mayor Eric Adams. The dismissal was issued with prejudice, preventing charges from being refiled at either the state or federal level. The case had alleged that Adams directed staff to accept straw donors to boost public matching funds during his campaign, and that he received travel perks from the Turkish government while the city expedited approvals for its new consulate. Judge Dale Ho dismissed the case with prejudice following a recommendation from a court-appointed attorney, who argued that keeping the case open could suggest Adams' freedom was tied to cooperation with federal immigration enforcement. Adams responded by stating the case “should have never been brought” and reiterated that he “did nothing wrong.” As reported this morning, Adams will be running for reelection as an independent.
Capital Markets: Refi Activity Across the Boroughs
Several new refinance deals were executed in Manhattan and Brooklyn:
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Hawthorn Park (Upper West Side): $231 million arranged by Wells Fargo Multifamily Capital for the 54-story rental tower at 160 West 62nd Street. The building has 339 units, including 68 affordable units. The deal included a 7-year Freddie Mac bond credit enhancement.
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Goose Property Management (Brooklyn): Signed a refinancing loan under the entity Lorimer St Holdings LLC.
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Related Companies (Roosevelt Island): Closed a $75 million refinancing for Riverwalk 6, LLC.
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Joseph Vogel (Gowanus): Secured $33 million in refinancing via JLL for a 66-unit building under Crown 286 4th Avenue LLC.
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Michael Goldstein (Gowanus): Acquired a $13.3 million note backed by a 19-unit rental.
Kirkland & Ellis Expands Midtown East Footprint
Kirkland & Ellis has leased 131,000 square feet at 900 Third Avenue, near its existing 520,000-square-foot headquarters at 601 Lexington Avenue, where it holds a lease through 2039. The firm cited growth and anticipated future needs as the reason for expansion.
Midtown office rents averaged $80.47 per square foot in Q1 2025. The landlord, Paramount, recently sold a 45% stake in the property, valuing it at $210 million. CEO Albert Behler said the deal “strengthens our balance sheet and offers enhanced flexibility in our capital allocation strategy.”
Foreclosure Filed on SoHo Retail Condo
Thor Equities and Premier Equities may lose their 9,500-square-foot retail condominium at 25–27 Mercer Street in SoHo. Rialto Capital filed a foreclosure action after acquiring the property’s $10 million loan from Signature Bank.
The firms reportedly owe $9.5 million on the loan. They purchased the building in 2014 for $4.8 million. The space is partially leased to retailer Nanushka; the remainder is vacant.
Thor continues to be involved in the $3 billion Coney Island casino proposal.
Casino License Bids Expand with Affordable Housing Commitments
Queens Future, the joint venture between Steve Cohen, Hard Rock International, and Slate Property Group, has proposed building over 450 units of affordable housing in Corona, Queens. The project is tied to their Metropolitan Park casino license bid and would be developed on a parking lot at 54-19 100th Street, nearly two miles from the proposed casino site.
The MOU includes provisions for deeply affordable units, community space, amenities, parking, and a playground. The units would remain income-restricted for at least 60 years, and the plan emphasizes local and diverse hiring.
State Senator John Liu supports the proposal and has agreed to introduce rezoning legislation in exchange for new parkland near Citi Field.
Steve Cohen stated, “From day one, Metropolitan Park has been Queens-focused... We have been committed to working with local community organizations to improve the quality of life for our neighbors.”
Casino Bidder Landscape
Competing casino bids include:
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Freedom Plaza (Soloviev Group and Mohegan)
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Hudson Yards (Related Companies and Wynn Resorts)
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Times Square (SL Green, Caesars, and Roc Nation)
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Coney Island (Thor Equities, Saratoga Casino Holdings, Chickasaw Nation, Legends)
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Resorts World NYC (expansion of existing Queens property)