Legal Drama and Development Ambition Define the Week
From multimillion-dollar fraud cases to skyline-transforming towers, this week’s headlines stretch from the courtroom to Columbus Avenue. The New York City real estate market is once again proving that no two stories move in the same direction — even when they intersect.
Legal Roundup: High-Profile Fraud Cases Unfold
Nir Meir, the embattled former executive of HFZ Capital Group, is back out of Rikers Island — again. Meir was released on a $1 million bond after briefly returning to jail when one of his ankle monitors was triggered. Prosecutors allege Meir helped move hundreds of millions out of HFZ-controlled accounts tied to developments like The XI on the High Line, leading to a $15 million tax fraud case. Unlike most co-defendants who accepted plea deals, Meir continues to fight the charges. His next court appearance is set for July 23rd.
Meanwhile, Boruch Drillman received a notably lenient sentence — five years probation — for his role in a $165 million mortgage fraud scheme. Drillman cooperated early, helped expose a web of falsified sales contracts and inflated property values, and faced social backlash for testifying. One deal he was involved in used a $95 million fake sale contract to secure a $74 million loan on a Cincinnati complex bought for just $70 million. His cooperation helped unravel deals spanning multiple states and lenders, including JP Morgan.
Midtown Mansion Trades for a Loss
A Gilded Age landmark at 9 West 54th Street sold last week for $38.2 million, a notable discount from its previous $55 million purchase price in 2019. The buyer, the William R. Berkley Foundation, will use the 24,449-square-foot property for both personal and business purposes. The building, originally constructed in 1896 as the James J. Goodwin Residence, had been listed for as high as $63 million before the price steadily dropped through early 2024.
The transaction reflects continued pricing pressure on high-end, non-income-producing assets — particularly those caught between residential appeal and commercial utility.
Hudson Yards: Zero-Carbon Office Tower Breaks Ground
Construction is officially underway at 70 Hudson Yards, a 47-story, 717-foot skyscraper being billed as New York’s first zero-carbon emissions office tower. Developed by Related Companies and Oxford Properties, and designed by Roger Ferris + Partners and Gensler, the building will be fully electric, offering 1.1 million square feet of space and a deep amenities package.
Deloitte has signed on as the anchor tenant for 800,000 square feet, relocating from 30 Rockefeller Plaza. Amenities will include conferencing, wellness areas, podcast/media studios, “red-eye” suites, and ground-floor dining. The building is expected to deliver in late 2028.
Extell’s 1,500-Foot Play on the Upper West Side
Developer Gary Barnett is taking aim at the Upper West Side skyline with a potential 1,500-foot residential tower at the site of the former ABC campus on Columbus Avenue. The project — which could become one of the tallest residential buildings in the city — is drawing scrutiny from the community, but Extell is proactively offering an affordable housing component to ease resistance.
While zoning does not require affordability, Barnett has proposed over 100 affordable units across two smaller buildings on the site. Community leaders are pushing for as much as 30% affordable, ideally on-site. Extell previously acquired the ABC campus for $930 million in 2022. The move mirrors Barnett’s battle across the street for a 775-foot tower, which faced years of legal and political opposition before finally moving forward.