Brooklyn Leads NYC’s Housing Proposal Surge
New data from the Real Estate Board of New York (REBNY) shows a sharp increase in multifamily construction permits during the first quarter of 2025. Across the five boroughs, developers filed for 6,871 proposed residential units across 123 buildings — a 65% increase from Q4 2024 and 58% above the long-term average since 2008.
Brooklyn topped the list with permits for 3,080 units in 44 buildings. The Bronx followed with 2,358 units, then Queens with 1,049, Manhattan with 384, and Staten Island with zero.
Interestingly, while unit count rose, project size shrank. The total square footage remained under 10 million for the ninth straight quarter, driven largely by the 485x tax abatement program. Developers are intentionally staying under 100 units per building to avoid triggering wage requirements under the new incentive. Seventy-seven of the 123 buildings proposed had fewer than 50 units; 35 more had between 50 and 99.
REBNY’s Zachary Steinberg noted that while Q1 activity was still below historical volume, the increase offers a critical boost to both the housing pipeline and the city’s construction economy.
$3B+ in April Financing Reignites Major Projects
April saw a return of major financing activity, with banks and institutional lenders re-entering the NYC market. Key takeaways:
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Vornado Realty secured a $450M loan for Times Square retail and billboard assets.
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Fortress & partners landed $350M to relaunch condo sales at 125 Greenwich Street.
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KS Group received $300M in construction financing for its 2,800-unit Astoria Cove megadevelopment.
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Sioni Group & AB & Sons secured $275M for a Midtown South high-rise project.
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Goose Property Management received $166M for four Boerum Hill buildings — all under 100 units — and another $108.5M permanent loan for 575 Grand Street in East Williamsburg.
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Daol Asset Management financed its acquisition of 285 Madison Avenue for $205M.
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Additional deals included student housing (569 Lexington), hotel refinancing (JFK Marriott), and luxury rental repositioning (The Wave, East Williamsburg).
The financing surge helped restart several long-stalled developments, especially in condo and multifamily sectors.
Conversions Dominate Office Market Headlines
The office market remains under pressure, but repositioning is accelerating.
Empire Capital is in contract to acquire 381 and 373 Park Avenue South for $130 million — roughly 57% occupied, with at least one building being evaluated for residential conversion. The firm has been aggressively acquiring distressed office assets at major discounts.
At 5 Times Square, a long-anticipated office-to-residential conversion has been officially approved. SL Green, RXR, and Apollo will convert the 38-story tower into up to 1,250 apartments, with 313 permanently affordable. Construction begins later this year.
BNY Mellon is also making moves — negotiating a 200,000-square-foot sublease from Condé Nast at 1 World Trade Center to support headquarters renovations at 240 Greenwich. Condé, which still leases 1.2 million square feet, has already sublet 230,000+ square feet since 2019.
Pinnacle Group Puts 5,000+ Units into Bankruptcy
Joel Wiener’s Pinnacle Group has filed for bankruptcy protection on roughly 5,000 NYC apartments, spanning Manhattan, Brooklyn, Queens, and the Bronx. This comes after Flagstar Bank filed four pre-foreclosure actions tied to over $600 million in loans.
The bankruptcy filings cite assets and liabilities between $500 million and $1 billion. The move impacts more than half of Pinnacle’s estimated 8,700-unit NYC portfolio and marks one of the largest residential restructurings in recent city history.
$400M Plan to Reimagine Fifth Avenue
Mayor Eric Adams has unveiled a bold $400 million initiative to redesign Fifth Avenue between Bryant Park and Central Park. The plan will transform the avenue into a pedestrian-prioritized boulevard, with wider sidewalks, fewer vehicle lanes, and enhanced greenery, lighting, and seating.
The city expects the initiative to pay for itself within five years through increased property and sales tax revenue. Design work is underway and expected to wrap this summer.