The industry is scrambling to ensure Andrew Cuomo is the next mayor. The industry is resigned to a socialist mayor.
Both these things can be true because, unlike the Borg, the real estate industry isn’t a cybernetic collective with shared consciousness.
Related Companies CEO Jeff Blau threw up the bat signal Monday night, calling on fellow developers and other ultrawealthy donors to meet the next morning, the New York Times reported. According to the Times, the attendees convened to strategize former Gov. Andrew Cuomo’s path to victory. Whether this translated to a concrete action plan or simply executives cutting checks in the Pool Room of the Seagram Building, is unclear.
Of course, if the strategy is to throw more money on the campaign, that is pretty much the same strategy employed pre-primary.
Meanwhile, some affordable housing developers are concluding — as the Borg like to say — resistance is futile.
A developer told me last week that folks in this space are meeting Mamdani and keen to be part of his agenda-setting and administration-building conversations. The Wall Street Journal spoke with developers who are drafting housing proposals for Mamdani.
Some in the industry decided to support Mamdani post-primary, simply because he’s the Democratic nominee. As I’ve previously reported, professionals in the affordable and nonprofit housing world, as well as other sectors (property management, construction, architecture and brokerage) have also donated to his campaign, though not to the same degree we’ve seen with Cuomo and Mayor Eric Adams.
The point is: there are many rooms in this industry, not just the Pool Room. Even within each of these rooms, there are variations. (Related, one of the city’s largest developers, got its start in affordable housing, which it still builds in addition to luxury residential, office towers, etc.)
And how the people in these rooms view the race is fluid.
A poll by the New York Times and Siena University found that 46 percent of likely voters intend to cast their ballot for Assembly member Zohran Mamdani. The polls showed Cuomo in second with 24 percent.
The margins narrow considerably if the race becomes a two-way contest between Mamdani and Cuomo, with the former taking 48 percent and the latter 44 percent of the vote. Adams and Republican nominee Curtis Sliwa have maintained that they are staying in the race, and even if they drop out, they will likely remain on the ballot.
Still, if the race narrows to two contenders, the calculus may change for those looking to work with Mamdani. It is going to be a long two months!
What we’re thinking about: Are you a developer who decided against pursuing a project — either in the very early stages or once public review has started — because the local Council member made their opposition clear? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: The Vatican has had an observatory since 1891, which is now run by Guy Consolmagno, who is known as the “Pope’s Astronomer,” according to the New Yorker.
Elsewhere in New York…
— Testimony got heated during recent public hearings about the downstate casino bids, The City reported. At meetings in Queens and the Bronx, supporters and opponents weighed the value of the promised community benefits and economic activity of two controversial proposals for new developments atop public parks: Steve Cohen and Hard Rock International’s bid for Citi Field and Bally’s proposed casino at Ferry Point Park.
— Greenpoint residents are complaining about worsening fumes, dust and odors from Long Island City’s Green Asphalt plant, according to Gothamist. The plant says it hasn’t changed its operations since opening in 2011, but locals believe the problem has gotten noticeably worse over the last three years. The Department of Environmental Conservation has cited the facility for air quality violations and ordered it to raise its smokestack and add emissions controls. Compliance, however, remains unclear.
— Apartment construction in the city took a nosedive, declining 67 percent this year, according to data from CoStar, Commercial Observer reported. Developers pointed to the new 485x tax abatement for driving up costs and eroding returns, while shifting investments toward existing buildings instead of new ones. — Quinn Waller
Closing Time
Residential: The top residential deal recorded Wednesday was $14 million for a 6,000-square-foot co-op at 1010 Fifth Avenue on the Upper East Side. Sheila Ellis and Patricia Wheatley of Sotheby’s International Realty had the listing.
Commercial: The top commercial deal recorded was $56.7 million for a project that includes 372 Schermerhorn Street and 475 State Street in Downtown Brooklyn. The two buildings are part of a proposed 538-unit project dubbed One Third Avenue; The Real Deal reported in August on Alloy Development securing $500 million for the development.
New to the Market: The highest price for a residential property hitting the market was $26.8 million for a 3,347-square-foot condominium unit at 15 Central Park West on the Upper West Side. The Mercedes Berk Team with Engel & Volkers has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 42,794-square-foot mixed-use project at 42-62 24 Street in Long Island City. This plan includes an attended parking garage with retail to accompany the 39-story residential project by Grand Construction & Development at 23-07 43 Avenue.
— Matthew Elo
