New York City Reels From Deadly Building Collapse

13 minutes read

A terrible tragedy shone a harsh light on a Brooklyn building after the Flatbush property collapsed, killing eight and injuring 18 more.

The incident at 1321 Flatbush Avenue happened around 4:30 p.m., when the building fell into an open construction site next door.

The dead include two children and two construction workers. Rescue efforts unfolded overnight before they were called off about 24 hours after the initial incident. The cause of the collapse has not been officially established.

Public filings show that the owners of both properties, along with some of the entities on the job site, have a history of violations or legal actions.

The apartment building at 1321 Flatbush Avenue had 98 open violations with the city’s Department of Housing Preservation and Development before it collapsed. Infractions included defective doors, a leaky roof, bedbug infestations and exposed wiring.

Olufemi Falade, whose company Isolag Realty Corp holds the deed, was sentenced to 12 days in jail in 2006 for infractions including vermin and electrical issues across his Brooklyn portfolio. Falade has also seen multiple tax liens sold on his properties and appeared multiple times on the public advocate’s worst landlord list.

At the adjacent 2625 Bedford Avenue, contractor N Tech Design of America disregarded a DOB stop-work order issued in March; agency inspectors found in April that demolition continued in violation of the order, prompting a $10,000 Office of Administrative Trials and Hearings penalty.

N Tech Design also received a $2,500 OATH penalty for an initial violation citing a lack of overhead protection on the job site or adjacent properties. The contracting firm still had thousands in unpaid DOB penalties across other construction sites as of Nov. 12

Robert Fischman of W6 Facility X is listed as the owner of the property on permitting applications, and Judy Swimer and Faigy Fischman are listed as the owners of two limited liability companies that bought the property for $4 million in 2024.

Jeiming Wang of LMW Engineering Group filed excavation plans to install shoring, along with seismic monitoring devices and crack gauges on neighboring buildings; MD Islam of RI Consulting Services served as special inspector on the project. Additionally, Mordchai Waisbrod of Townhouse Builders had received a DOB permit in September to set up shoring at the excavation site to support the adjacent building prior to the collapse.

The collapsed building featured four apartment units, while the building under construction next door, 2625 Bedford Avenue, was formerly a one-story property being converted into a nine-unit apartment complex, according to the New York Times.

On Thursday, Mayor Zohran Mamdani said the Department of Buildings conducted sweeps of 100 sites in the city associated with entities behind the Flatbush construction site. The response is reminiscent of when the DOB launched a sweep of office-to-residential conversions after the partial collapse of the former Pfizer building in July.

Let’s get into other news out of the New York real estate industry this week.

Family of slain Rudin employee sues firm for wrongful death

The parents of Julia Hyman, an employee killed in the 2025 mass shooting at 345 Park Avenue, filed a wrongful death lawsuit against Rudin Management in New York Supreme Court.

The complaint alleges Rudin and additional defendant McLane Security failed to provide adequate security, allowing the armed shooter to move through the building and reach the 33rd floor.

This marks the second lawsuit filed against Rudin regarding the shooting, following a previous suit brought by the widow of an off-duty security guard killed during the incident.

Gary Barnett finally buys out Podolsky brothers, ending yearslong standoff at UES dev site

Extell Development purchased a 6,000-square-foot building at 1645 First Avenue from Jay and Stuart Podolsky for $27.9 million.

The acquisition concludes a yearslong standoff, completing Gary Barnett’s assembly of his Upper East Side development site.

The property, formerly a homeless shelter, gives Extell control of the entire site as it figures out future plans.

ESRT eyes $150M for Garment District office building

Empire State Realty Trust put the 500,000-square-foot office building at 501 Seventh Avenue on the market with an asking price of about $150 million.

The 18-story building is 84 percent leased and counts fashion industry tenants like Steven Madden, PVH Corp and Carolina Herrera.

The offering follows recent sales of 1359 Broadway and 250 West 57th Street as part of the Tony Malkin-led REIT’s strategy to pay down debt and buy back shares.

Mamdani signs COPA into law

Mayor Zohran Mamdani signed the Community Opportunity to Purchase Act into law on Tuesday, concluding a six-year legislative battle.

The legislation grants eligible nonprofits and joint ventures the first opportunity to make offers on certain distressed multifamily buildings and regulated properties.

While supporters view COPA as a vital tool to promote responsible property stewardship, industry groups have raised concerns about the new timelines and financial hurdles involved.