Real Estate

Real Estate Reels From Mamdani Win

28 June 2025

There’s no part of New York City that wasn’t touched by the seismic victory of Zohran Mamdani in the Democratic primary for mayor, real estate included.

The Democratic Socialist candidate won the Democratic nomination for New York City mayor, a stunning upset and a significant blow to the real estate industry. Former Gov. Andrew Cuomo conceded the race Tuesday night, despite the ranked choice tallying process only beginning. (He plans to run as an independent in November’s general election.)

Mamdani’s mayoral primary victory is considered a huge setback to rent-stabilized building owners, as the assemblyman promised to freeze the rent for those properties.

Others in real estate may be okay if Mamdani prevails in the general election come the fall. In fact, the industry is expected to navigate his prospective term much like they did when Bill de Blasio was in charge, prior to Eric Adams, who is also running for reelection.

Mamdani’s 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.

In non-election news, First Deputy Mayor Randy Mastro announced Monday that the city reached an agreement with Councilmember Chris Marte to rezone three sites that would net 620 affordable units, or more than 400 apartments than were planned for the Elizabeth Street Garden site.

Mastro said Marte agreed to support rezonings at 22 Suffolk Street, 156-166 Bowery Street and 100 Gold Street. In exchange, the Elizabeth Street Garden will be preserved as a park.

Pennsylvania-based Toll Brothers entered into contract to purchase Brandon Miller’s former Chelsea development property at 118 10th Avenue from Benny Barmapov for $53 million.

Miller previously hoped to build an office building on the site, but it is now expected to be developed residentially.

The property, a 12,000-square-foot undeveloped parcel including two adjacent properties, was taken back by Barmapov after Miller’s death a year ago. The site has seen a series of stalled development plans and financial issues.

Finally, in this week’s most scandalous story, Jared Solomon, a former Vornado Realty Trust executive, was charged with embezzling more than $9.5 million from the company between 2009 and 2023. The alleged fraud is believed to be connected to Vornado’s Times Square signage business, a source told The Real Deal.

Solomon was indicted in December on charges of wire fraud and aggravated identity theft, to which he pleaded not guilty.

If found guilty, Solomon faces up to 20 years in prison and restitution of the stolen funds. Prosecutors are also seeking forfeiture of properties he allegedly purchased with the illicit gains, including a Westchester home and a co-op apartment on the Upper East Side.