NYC Real Estate Update: New Builds, Market Hurdles, and High-Stakes Ventures

The dynamic landscape of New York City real estate continues to evolve, marked by ambitious new construction projects, ongoing market challenges, significant financial movements, shifts in affordable housing strategies, and the high-stakes pursuit of downstate casino licenses. This update delves into the key stories shaping the sector.

New Developments on the Horizon

Bronx Residential Expansion

In Fordham Heights, the Bronx, Gjek Popaj has initiated a new construction project at 299 East Burnside Avenue. Plans, filed on July 18, 2025, detail an eight-story residential building with 93 units and a total area of 60,592 square feet. The property was acquired by Popaj for $4.7 million in February 2025 as part of a four-property sale.

This project contributes to the 1.1 million square feet of commercial and multi-family construction currently under development in Fordham Heights over the last two years, representing 7% of the neighborhood's built space. The architect for this significant residential undertaking is Fred Geremia, Architects & Planners.

Brooklyn Mixed-Use Project

In Park Slope, Brooklyn, Shimon Kleinman of Borough Developers has submitted plans for a substantial new mixed-use building. Located at 67 4th Avenue, the proposed 14-story structure will house 99 residential units across 88,943 square feet. This project is planned for a 7,932-square-foot, five-parcel development site.

The design, by Kao Hwa Lee Architects, includes a cellar level with amenities such as bicycle parking, a lounge, co-working space, a children's room, and a gym, alongside ground-floor retail and recreational areas. The site was partially acquired in March 2022 for $3.9 million. Park Slope has seen 1 million square feet of commercial and multi-family construction in the past two years, accounting for 10% of its built space.

Industry Challenges and Legal Battles

Chetrit Group's Legal Woes

The Chetrit Group is currently facing considerable pressure from the City of New York and other lenders. The City has filed a lawsuit alleging the Hotel Carter at 250 West 43rd Street in Times Square is a dangerous nuisance, citing over 150 violations and seeking fines. This action comes amidst ongoing litigation, including a $223 million loan dispute with Mack Real Estate Group.

Further challenges for the Chetrit family include a potential foreclosure and allegations of mismanagement at the Hotel Indigo Williamsburg, located at 500 Metropolitan Avenue in Brooklyn. The lender claims several defaults, including an unauthorized major lease, failure to pay vendors, missed maturity deadlines, and inadequate building maintenance. Tenants at this property have also reported issues such as rent overcharging and abandonment.

Financial District Condo Oversupply

The 125 Greenwich Street condominium tower in the Financial District is grappling with a significant oversupply of condos in the area. After initially setting an ambitious price target, the project has scaled back its unit availability and discounted prices by over 25% on average to facilitate sales. Despite recently achieving "condo effective" status by signing 42 contracts, the tower is on pace for a lengthy sellout, with few high-value units sold.

Bally's Casino Proposal Rejection

In a setback for the casino industry, the City Council voted against Bally's proposal to rezone a Bronx golf course for a $4 billion casino complex. This rejection effectively halts Bally's path forward in the competition for a downstate casino license, underscoring the importance of local government approval for major development projects.

Charles Cohen's Asset Seizure

Real estate mogul Charles Cohen is facing legal difficulties, with an Italian court ordering the temporary seizure of his wife's $48 million megayacht. This action is part of Fortress Investment Group's efforts to collect on a $187 million court judgment against Cohen, following his default on a $534 million loan.

Major Transactions and Investment Trends

Silvercup Studios Refinancing

Silvercup Studios, a prominent New York City film studio, has secured a refinancing agreement for its debt. Hackman Capital Partners and Affinius Capital reached a new arrangement for the $280 million debt that was nearing maturity, originally provided by Apollo Global Management and Deutsche Bank. The studio includes three campuses in Long Island City and the Bronx.

SL Green's Opportunistic Debt Fund

SL Green has successfully surpassed its $1 billion fundraising goal for the SLG Opportunistic Debt Fund, with over $500 million committed recently. The fund targets loan originations, purchasing existing loans, and acquiring CMBS securities. Major investors include international entities like Menora Mivtachim, CDIB Capital Group, and Caisse de Dépôt et Placement du Québec.

Notable NYC Real Estate Sales

Recent sales activity highlights diverse market movements:

• A full-floor co-op on the Upper West Side sold for over $7 million
  
  

• An 11-story self-storage facility in the same area fetched $60 million
  
  

• A multi-building industrial complex in Sunnyside traded for $35.2 million
  
  

• A Flatiron District commercial condo sold for $7 million — a 56% drop from its previous price
  
  

These deals unfolded amid a national slowdown in new residential construction, particularly for single-family homes, due to rising costs and economic uncertainty.

The Affordable Housing Landscape

Robust Portfolio Sales and Investment Drivers

New York City’s affordable housing market has seen strong portfolio sales, driven by relatively low risk, value-creation potential, and generous tax incentives. ESG criteria have also brought new capital into the space.

Key transactions include:

• Tredway’s $88 million acquisition in Far Rockaway
  
  

• Longacre Group’s $192.5 million rent-stabilized portfolio deal in the Bronx
  
  

• Fetner Properties' $209.5 million purchase of a Brooklyn tower with affordable units
  
  

Public programs like the 485x tax abatement (replacing 421a) and the 467m conversion program are spurring this growth, as is the "City of Yes" zoning initiative.

Political Uncertainties and Industry Perspectives

Concerns are rising around the potential election of Zohran Mamdani as mayor. His proposals — including a rent freeze on stabilized units and state-led affordable housing — have sparked debate. While Mamdani has voiced support for private-sector involvement, leaders like Will Blodgett (Tredway) and Shimon Shkury (Ariel Property Advisors) warn that restrictive policies could reduce supply and drive up free-market rents.

The industry consensus remains: solving NYC’s housing crisis will require sustained collaboration between public and private sectors.

Casino Licenses – The High-Stakes Game

The Quest for Downstate Casino Licenses

Eight groups are competing for just three downstate casino licenses. Success depends on:

• Community Advisory Committee (CAC) approval
  
  

• Economic and civic benefit
  
  

• Transit access and minimal disruption
  
  

• Alignment with local sentiment
  
  

Key Proposals in the Running:

• Metropolitan Park (Queens): Steve Cohen + Hard Rock | $8B mixed-use project incl. 2,500 affordable units and a stadium
  
  

• Resorts World NYC (Queens): $5B upgrade of existing racino; adds 3,000 housing units
  
  

• MGM Empire City (Yonkers): Another racino with minimal local opposition
  
  

• Caesars Times Square (Manhattan): $5.5B plan at 1515 Broadway with minimal added amenities; faces heavy opposition
  
  

• The Coney (Brooklyn): Casino + hotel + convention center; rezoned but controversial with locals
  
  

• Freedom Plaza (Manhattan): Soloviev + Mohegan | museum, 1,000 units (48% affordable), union and pension fund support; rejected by CB6
  
  

• The Avenir (Manhattan): Silverstein + partners | casino, hotel, 2,000 apartments (25% affordable); concerns about traffic and housing clarity
  
  

CAC approvals are due by September 30, and final decisions from the Gaming Commission are expected by December 1.