While many in the business community are sounding the alarm about a potential Mayor Zohran Mamdani, the real-world impact largely remains to be seen.
Benefit Street Partners Realty Trust may be the exception.
In a LinkedIn post, Benefit Street’s head of real estate, Michael Comparato, claimed the alternative asset manager bailed on a $300 million hotel acquisition in New York City due to Mamdani’s win in the Democratic primary. He said the firm was “days away from signing a contract to purchase a portfolio of hotels in NYC for $300m+.”
“His platform advocating for higher taxes, rent freezes, city owned/operated grocery stores, and who knows what else that flies in the face of free market capitalism,” Comparato wrote.
He added that the “prospect of increased regulations, unionization, and/or new taxes under socialist leadership introduces unprecedented risks that are challenging to quantify,” giving the company no choice but to abandon ship. Comparato said New York investment would be frozen until the general election, four months away.
It’s a bold claim by Comparato, but a lack of details about the acquisition invites scrutiny. Benefit Street did not respond to a request for comment from The Real Deal, which included a request for documentation regarding the accusation.
Comparato did tell Bisnow that it was “very scary that a socialist could be voted into power in the United States,” but declined to comment beyond that.
Mamdani’s mayoral primary victory is unquestionably a huge setback for rent-stabilized building owners, as the assembly member campaigned on a promised rent freeze for those properties.
But others in real estate may be alright, much like the industry operated during Bill de Blasio’s tenure. Mamdani’s evolving stance on private development has shifted to a more favorable position, though his housing agenda may still limit production due to affordability mandates, historic districts and a focus on social housing.
Still, business and real estate figures are beginning to coalesce around beleaguered incumbent Eric Adams, who may be the best chance at this point to keep Mamdani out of office.
Benefit Street’s backtracking has it missing out on a hot hotel market in the Big Apple, which ranked first in occupancy among the top 25 markets in May, according to STR.
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