Federal Indictment Targets Josh Schuster, Former Head of Silverback Development
Once regarded as a promising figure in New York real estate, Josh Schuster is now facing serious legal troubles. Prosecutors allege that the former head of Silverback Development misappropriated millions from investors between 2018 and 2022—funds that were meant to support various real estate initiatives in the city. Instead of fulfilling these commitments, Schuster reportedly used the money to cover personal expenses, including private school fees, country club memberships, credit card bills, gambling debts, and even hired a driver for social engagements.
The indictment details what prosecutors term a “Ponzi-like” operation, wherein new investor funds were allegedly diverted to pay off earlier investors. An illustrative case includes $450,000 taken from a $23.6 million investment, which was supposedly used for personal debts and to settle obligations with prior investors. Following the closure of Silverback, Schuster moved to South Florida and is now facing charges of wire fraud and securities fraud, with each charge potentially leading to a 20-year prison sentence. He has publicly refuted many allegations and discussed the intense pressure of maintaining a facade of success while his financial situation deteriorated.
Blackstone Buys Kimpton Eventi Hotel for $150M
In a significant move within the hospitality sector, Blackstone Group has completed the acquisition of the Kimpton Eventi Hotel for $150 million. This 292-key hotel, located at 835 Sixth Avenue in NoMad, encompasses over 333,000 square feet of space. The seller was a partnership between JD Carlisle and DLJ Real Estate Capital Partners. The transaction, which finalized on May 1, is expected to contribute positively to Blackstone's cash flow.
This purchase is a part of Blackstone's broader strategy, with the firm having been particularly active in the New York market over the past two years, acquiring assets valued at over $649 million while selling properties totaling more than $574 million during that timeframe.
David Werner Acquires 300 E 42nd Street in Short Sale
In Murray Hill, David Werner Real Estate Investments has successfully acquired the office building located at 300 East 42nd Street for $52 million through a short sale. This purchase represents a steep decline from the $122.5 million price tag Meadow Partners and Somerset Partners paid in 2019. The transaction closed on April 23, 2025, and involved the Fortress Investment Group, which absorbed part of the loss.
The building features nearly 208,000 square feet of space, and reports indicate that Werner has already flipped the office segment to CSC Living, a company led by the Smeke family. Additionally, he has secured a 99-year lease for the retail areas on the lower levels. This swift transaction reflects an opportunistic approach to distressed pricing.
Tredway Buys 602-Unit Ocean Park Apartments in Far Rockaway
Tredway has finalized the purchase of the Ocean Park Apartments, a sizable affordable housing complex in Far Rockaway, for $88 million. This 602-unit property, built in 1972, was previously listed under Related Companies, although the seller's identity was not disclosed in public filings.
Alongside the acquisition, Tredway has established a new agreement with the NYC Department of Housing Preservation and Development to ensure that all units will be designated as rent-stabilized. This agreement also aims to extend affordability for numerous units based on specific Area Median Income (AMI) levels. Given the complex’s beachfront location, substantial renovations are planned, including a new roof and weatherproofing against salt spray exposure.
Clipper Equity Lands $115M Refi for 953 Dean in Crown Heights
In Brooklyn, Clipper Equity has successfully obtained a $115 million refinancing loan for its newly completed project at 953 Dean Street. This 240-unit residential building, known as Prospect House, is now entering the lease-up phase after finishing construction.
The refinancing, provided by Berkshire Residential Investments, replaces previous debt of the same amount. Of the 240 units, 72 are set aside for middle-income residents under a former tax incentive program. This deal reflects Clipper Equity's proactive approach to financing shortly after completing a development.
Real Estate Executives Fuel Political Spending Surge
Finally, let’s explore the connection between real estate and political funding. A super PAC associated with former Governor Andrew Cuomo, named Fix the City, has reportedly raised over $3 million from various real estate executives and construction unions. Notable contributors include Steve Roth, CEO of Vornado Realty Trust, who donated $150,000, alongside executives from The Arker Companies contributing at least $100,000.
In parallel, another super PAC backed by the Real Estate Board of New York is increasing its financial involvement in City Council races. This growing influence of real estate on political campaigns continues to be a significant trend in New York City's evolving political landscape.