The countdown to New York City’s mayoral election is almost over, and this one has the real estate world holding its breath. After Eric Adams’ abrupt exit and endorsement of Andrew Cuomo, the race has narrowed to three main contenders: Cuomo, Zohran Mamdani and Curtis Sliwa. But it’s Mamdani, the progressive state Assembly member from Queens, who’s leading the polls as we enter the home stretch.
Mamdani’s housing platform pitches a four-year rent freeze for stabilized apartments, 200,000 new affordable units over a decade and a $70 billion increase to the city’s capital plan to fund it all. He’s also said that the city could help property owners adhere to Local Law 97 by buying green technology in bulk. Cuomo, who’s mounting a comeback bid as an independent, has tried to position himself as a stabilizing force and counterweight to Mamdani’s further left ideologies. He’s called for the creation or preservation of 500,000 housing units and proposed “Zohran’s Law,” a tweak to rent stabilization that would limit who can occupy stabilized apartments after they become vacant.
Mamdani, who sits on the Assembly’s real property taxation committee, has also made property tax reform a central plank of his campaign. He’s pointed to the Tax Equity Now New York lawsuit as a potential catalyst. Cuomo has echoed that sentiment, saying a court order might be the only way to break through the political gridlock that’s stymied past mayors. Sliwa, meanwhile, has pushed for broad property tax cuts alongside reductions in other city levies.
For real estate, the stakes couldn’t be higher. The next mayor will help shape the future of rent regulation, guide appointments to the Rent Guidelines Board and determine how far to push on energy and zoning reform. Many who oppose Mamdani argue that his policies could drive capital out of the city at a time when New York can least afford it.
In the days after Mamdani’s primary win, Florida brokers reported an instant uptick in calls from New York investors and ultra-wealthy buyers, and Dina Goldentayer, a top broker with Douglas Elliman in Miami, even took out a billboard in Times Square urging New Yorkers to move to the Magic City.
The irony is that Miami’s own development cycle has cooled. High borrowing costs, construction inflation and a glut of luxury inventory have slowed the city’s once-frenzied condo pipeline. Office leasing has softened, and some developers are quietly shopping their projects before breaking ground. But even with those headwinds, South Florida’s appeal (no state income tax, a pro-business climate and an expanding wealth base) hasn’t lost its shine.
The “flight to Florida” narrative has been playing out since the pandemic, but for New York investors, this time it’s less about chasing the next boom and more about diversifying exposure.
The results of NYC’s mayoral election, along with what they signal for property owners and capital flows, will be top of mind at The Real Deal’s Miami Forum this week, where thousands of brokers, developers, lenders and investors will gather to talk about what’s next for both markets.
There was plenty of other news this week. A New Jersey title company owner pleads guilty to mortgage fraud, the Federal Reserve cuts its benchmark interest rate by a quarter point and Joseph Chetrit is indicted in a criminal tenant harassment case.
NJ title company owner reaches plea deal in mortgage fraud case
A New Jersey title company owner has admitted to playing a role in a multimillion-dollar mortgage fraud scheme tied to fake property loans in Brooklyn. Joshua Feldberger, who runs Universal Abstract in Lakewood, pleaded guilty to one count of bank fraud conspiracy after prosecutors said he helped facilitate a $4 million loan on properties Arthur Spitzer did not own.
Sapir Corp files for insolvency, sells Nomo Soho hotel
Alex Sapir’s real estate empire is unraveling, as his Israel-based Sapir Corp filed for insolvency and selling off its final assets. In a bid to raise cash, Sapir struck a $125 million deal to sell the troubled Nomo Soho hotel to Israel’s Dan Hotels after refinancing the hotel multiple times since its $208 million acquisition in 2015. Separately, Sapir is unloading 260 Madison Avenue to AmTrustRE for $217 million, a deal that caps years of family feuding, loan distress and failed sale attempts at the Midtown property.
Joseph Chetrit indicted in criminal tenant harassment case
Joseph Chetrit, one of New York City’s most prolific dealmakers, has been indicted on felony charges of tenant harassment, joining his brother Meyer as a codefendant in the case. Prosecutors allege the Chetrits harassed two elderly tenants in a rent-stabilized Chelsea loft building by cutting off heat and elevator access to push them out.
Fed serves second rate cut after hikes, backs off previous forecast
As expected, the Federal Reserve made another move on Wednesday, cutting its benchmark interest rate by a quarter point for the second time in less than two months. It’s the second time the central bank lowered the rate metric in six weeks and one of two cuts the bank previously signaled could be coming this year.
Landlords stand alone in fight against tech-savvy fraudsters
Fraudulent applications have become an increasingly common form of theft that starts when a tenant who generally lacks the means or intention of paying rent gets into a lease and then uses eviction protections to take a free ride that can last for months. Fraud runs the gamut from old-school tactics such as providing phony references to new digital tricks like creating fake pay stubs, and law enforcement offers little help.
Elliman CEO says brokerage “is not for sale”
Douglas Elliman CEO Michael Liebowitz is insisting the brokerage “is not for sale” even as it unloads its property management arm for $85 million. The deal with PMG Holdings, a subsidiary of Associa, marks a strategic pivot away from property management and toward what Liebowitz called an “asset-light, pure play brokerage” model focused on monetizing the Elliman brand.
Meet the Frisbies, Palm Beach’s homegrown real estate dynasty
For as long as real estate has been a business, it’s been a family business. That tradition is alive and well with the Frisbie Group, a Palm Beach homegrown development firm where nearly every employee shares the same last name. Decades into the business, the family is aiming for the big leagues, partnering on billion-dollar projects with Terra, Related Ross and the Trump-affiliated 1789 Capital.
Scotty Digital: Rechler restructures RXR’s 75 Rock with hedge fund cash
Scott Rechler restructured his “digital asset” at 75 Rockefeller Plaza — a major capital overhaul for a building that just three years ago seemed to have solved some of remote work’s challenges. RXR brought in San Francisco-based hedge fund Farallon Capital Management as an investor in the 33-story tower that serves as RXR’s headquarters
Witkoff, partners launch Ocean Terrace condo and hotel project with $200M in presales
Witkoff Group and partners Alex Blavatnik and Sandor Scher have officially launched sales at their long-awaited Ocean Terrace project in Miami Beach’s North Beach, kicking off with more than $200 million in presales. The mixed-use development will include a 52-unit condo tower, 24 condo-hotel units, a 42-key luxury hotel and a private members’ club.
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