Real estate is on everyone’s tongues.
The industry has come out in force at this year’s Somos legislative conference in Puerto Rico, with many saying that housing development in particular is a bigger topic of conversation than ever before at the annual gathering of New York’s political class.
The clear will to build from newly reelected Gov. Kathy Hochul and Mayor Zohran Mamdani also extends to city and state lawmakers, who are taking meetings with the powerful players from the real estate world. Walking through the lobby of the Caribe Hilton in San Juan, it’s not hard to catch a glimpse of political dealmaking around every corner.
Out by the pool, Assembly member Tony Simone sat down for a meeting with Hope Knight of Empire State Development. Upstairs, State Sen. Zellnor Myrie got together with REBNY’s Jim Whelan.
“Our conversations at Somos start with a simple premise: New York’s housing affordability challenge is also a competitiveness challenge,” Whelan said. “We need policies that allow us to build more rental housing, preserve the housing we already have and bring more apartments back into use. If working people increasingly can’t afford to live here, New York will have a harder time competing for jobs, investment and talent.”
Executives from Gotham Organization, SL Green and Two Trees also flew down to rub elbows with Albany and City Hall lawmakers. Lobbyists from top firms like Kasirer and Greenberg Traurig were close at hand to make introductions and help the industry shape next year’s agenda in the real estate industry’s image.
“My district’s doing its fair share, we proposed the [Greater Penn Plan] project right around Penn Station, went from 500 to 5000 units of housing.” Simone said, whose district covers Chelsea, Hell’s Kitchen and part of Lincoln Center. “Clearly it’s not easy, you have to get stakeholders like Vornado not to be selfish. They want to be leaders in the community and they want to be a part of the New York fabric, part of making the city more affordable. Steve [Roth] can get his office tower; we can also get a park, middle-class housing, market housing.”
Simone said ESD’s Knight, Mamdani and Hochul are all “intrigued” by the Greater Penn Plan. Knight also noted that Hochul is particularly eager to support the Pacific Park development with any legislative tools available to move the project forward after two decades of delays and financial woes.
Beyond individual development projects, lawmakers, including State Sens. Myrie, Erik Bottcher and Jeremy Cooney, are focused on 485x reform in the upcoming legislative session.
“That is very likely to be part of the conversation, given the larger discussion around affordability, housing and supply,” Myrie said. “I do think that [Hochul’s] margin of victory is going to allow her to put forward some bold things, and this may be one of a number of things. I’ve also been heartened to see the city’s dual approach, recognizing the need to build more while also trying to protect tenants as much as they can.”
What we’re thinking about: Do you see 485x reform as a likely outcome of a new Democratic supermajority in Albany and Hochul’s sizable mandate, or are there still significant hurdles to solving the 99-unit problem? Let me know at ben.miller@therealdeal.com.
A thing we’ve learned: The combined total number of NYCHA and PACT development residents is almost equivalent to the entire population of Boston, by some estimates.
Elsewhere…
— Amtrak’s proposal to rebuild Penn Station could funnel taxpayer money to subsidize a new entertainment venue for James Dolan’s Madison Square Garden Company, Gothamist reported. The plan calls for Amtrak to purchase the Infosys Theater at MSG and convert it into a grand entrance for the station on Eighth Avenue, and the money from the sale could be used to fund a new venue, potentially in the five boroughs.
— Gov. Kathy Hochul gained votes in her reelection bid across 92 percent of New York City neighborhoods compared to her 2022 effort, but she did lose ground in many Manhattan areas most exposed to the pied-à-terre tax, according to the City Reporter’s analysis.
— Meanwhile, Bruce Blakeman has spent the days since losing the race for governor fighting with other Republicans, accusing outgoing upstate Rep. Elise Stefanik of not “lifting a finger” to help fellow GOP candidates this year, City & State reported.
Closing time
Residential: The most expensive residential sale recorded Friday was $26.3 million for 255 East 77th Street, PHA. The Upper East Side condo is 6,000 square feet. Compass’ Alexa Lambert, Alison Black and Shelton Smith had the listing.
Commercial: The most expensive commercial transaction recorded was $226 million for 110 Greene Street. SL Green sold the 223,000-square-foot retail and office building in Soho for more than $1,000 per square foot to Natora Group.
New to the Market: The highest price for a residential property hitting the market is $26 million for 106 East 71st Street. The Lenox Hill mansion is 12,500 square feet. Its last recorded sale was in 2013, when it sold for $22.9 million. Sotheby’s International Realty’s Nikki Field and Dana Kirshenbaum have the listing.
— Joseph Jungermann
