Troubled NYC REIT Reaches Settlement on Foreclosure at 1140 Broadway

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, Market Insights, News, Openings & Closings

By Manhattan Real Estate Tracker, October 24, 2025

Troubled NYC REIT Reaches Settlement on Foreclosure at 1140 Broadway

In September 2025, American Strategic Investment Company (previously NYC REIT) reached a settlement to resolve a loan foreclosure of $99 million on its office building located at 1140 Sixth Avenue in Midtown Manhattan. A notable illustration of the broader financial difficulties that New York City’s commercial real estate investment trusts (REITs) and other property owners are encountering is the foreclosure. Following a mortgage payment default in April 2025, American Strategic Investment Company (ASIC) collaborated with Wilmington Trust, the lender, to return the property after indicating a lack of cash. According to an ASIC filing, the 22-story, 250,000-square-foot office skyscraper has a 26% vacancy rate in June 2025.   As far back as 2022, the company—which was known as New York City REIT until 2021—cited early lease expirations and tenant “financial difficulties” as justifications for violating covenants at this and other properties.

Manhattan Real Estate Tracker has spoken with a former investor in what had been known as NYC REIT and he had lost tens of thousands of dollars. Any type of non-publicly traded investment is very risky. Due your own diligence and beware of scams.

In a July 2019 complaint, the Securities and Exchange Commission (SEC) accused AR Capital LLC, its founder Nicholas S. Schorsch, and its former CFO Brian S. Block of improperly obtaining millions of dollars through two separate mergers involving REITs that AR Capital externally managed between late 2012 and early January 2014. The lawsuit specifically claims that the defendants obtained approximately 2.9 million more operating partnership units (OP units) than they were entitled to as a result of exaggerated incentive fee computations and unsubstantiated asset purchase/sale transactions. Without acknowledging or disputing the accusations, AR Capital, Schorsch, and Block consented to disgorgement, prejudgment interest, and civil penalties totaling more than $60 million.

Consumer Price Index (CPI) Rises Less than Expected

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, Market Insights, News

By Manhattan Real Estate Tracker, October 24, 2025

Consumer Price Index (CPI) Rises Less than Expected

From the U.S. Bureau of Labor Statistics:

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent on a seasonally adjusted basis in September, after rising 0.4 percent in August, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.0 percent before seasonal adjustment. Note that September CPI data collection was completed before the lapse in appropriations.

The index for gasoline rose 4.1 percent in September and was the largest factor in the all items monthly increase, as the index for energy rose 1.5 percent over the month. The food index increased 0.2 percent over the month as the food at home index rose 0.3 percent and the food away from home index increased 0.1 percent.

Core prices, excluding the volatile food and energy categories, rose 3%, below forecasts for a 3.1% increase. The inflation rate for core prices was 2.9% in August 2025. Analysts say that this may result in another interest cut later this year from the Feds.

HDFC Cooperative Apartments for Sale in New York City

Manhattan Real Estate TrackerLeave a commentResidential Real Estate

HDFC Cooperative Apartments for Sale in New York City

By Manhattan Real Estate Tracker, September 20, 2025

Image from Google

The City of New York bought several residential buildings in the 1970s and 1980s that had been abandoned by their landlords and suffered from financial problems. The New York City Housing Preservation and Development agency (HPD) restored parts of these buildings and gradually allowed tenants to purchase their apartments and become shareholders in limited-equity cooperatives known as Housing Development Fund Corporation cooperatives (HDFC coops). More recently, the City has funded and granted tax breaks for the new building, repair, and stabilization of HDFC cooperatives. Today, there are over 1,100 HDFC cooperatives that make up a large portion of New York City’s affordable housing inventory. HDFC cooperatives benefit from lower real estate taxes in exchange for income and resale limits, among other governance constraints.

Cooperatives are a unique type of housing ownership that differs from condominiums, single-family homes, and renting. Owners of cooperative apartments are referred to as “shareholders” since they buy shares in a cooperative business that owns real estate. HDFC cooperatives are incorporated under the New York State Business Corporation Law and Article XI of the New York State Private Housing Finance Law (Article XI), and they are overseen by HPD. In HDFC cooperatives, all shareholders own a same number of shares, regardless of apartment size. Shareholders elect a Board of Directors to make decisions for the cooperative. Typically, a cooperative Board of Directors is chosen on an annual basis.

Most HDFC coop flats for sale are listed, like other coops in the city, by shareholders or the coop’s Board of Directors via brokers and real estate websites. They are sometimes advertised by non-profit groups. Some HDFC coops are featured on the City’s affordable housing lottery system, NYC Housing Connect. The purchasers of HDFC apartments must meet specific legal requirements, including any papers signed by the cooperative with a governmental body and the cooperative’s governing documents. Shareholders and purchasers should always study an HDFC coop’s documentation to confirm the property’s restrictions, and they may wish to consult a lawyer.

More information on HDFC cooperatives can be found here. Streeteasy.com and other local residential sites provides listings of available apartments in the HDFC program.

Tim Ho Wan Has Closed on 9th Avenue in Hell’s Kitchen

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, News, Openings & Closings

Tim Ho Wan Has Closed on 9th Avenue in Hell’s Kitchen

By Manhattan Real Estate Tracker, August 23, 2025

Manhattan Real Estate Tracker, 2025

Manhattan Real Estate Tracker, 2025

After eight years, the last day open for the Tim Ho Wan restaurant was August 10, 2025. They will continue to operate at 85 4th Avenue in the East Village. A great article on the closing can be found at W42ST.nyc.

Midtown South Mixed-Use Rezoning for Over 9500 Apartments is Passed by City Council

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, News, Residential Real Estate

Midtown South Mixed-Use Rezoning for Over 9500 Apartments is Passed by City Council

By Manhattan Real Estate Tracker, August 18, 2025

Wikipedia,

After the pandemic, Midtown Manhattan was left with large amounts of office space that was no longer being leased as employees began to work more from home.  While a lot of employees have returned to work, there are still several buildings where residential conversions will be performed.  The Midtown South Mixed-Use Plan, the biggest residential neighborhood rezoning plan in 20 years, was adopted by the New York City Council today. It is expected to result in the construction of about 10,000 new housing units. More than $400 million will be invested in Midtown South’s infrastructure and neighborhood. The Council decided to approve legislation that would increase the security of childcare facilities, legalize the City’s cooling center program, and remove obstacles to supportive housing.

“To confront the citywide housing and affordability crisis, our city must build more homes and invest in housing solutions that allow generations of New Yorkers to remain in this city,” said Speaker Adrienne Adams. “The Council is proud to approve the historic Midtown South Mixed-Use Plan, as well as other housing projects, that will deliver over 10,000 new homes. The Midtown South Mixed-Use Plan will also invest nearly $488 million to preserve and support our city’s Garment District industries and help meet the needs of the surrounding communities. I thank my Council colleagues for their hard work and partnership to approve these rezonings that will benefit our communities for generations to come.”

More information on the rezoning can be found on the city council website here.

Governor Hochul Update on Congestion Pricing

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, News

By Manhattan Real Estate Tracker, August 14, 2025

Governor Hochul Update on Congestion Pricing

Congestion pricing cameras in Manhattan

NYC News

Recently, Governor Hochul’s office provided an update on the city’s congestion pricing program that has been successful in lowering traffic and generating revenue to fund regional transit improvements in its first six months of operation. The country’s first urban congestion pricing program, which went into effect on January 5th at 12:00 am, charges drivers to enter the Congestion Relief Zone (CRZ) below 60th Street in Manhattan, thereby reducing traffic. The MTA plans to forward $15 billion in vital capital enhancements to mass transportation on its subway, bus, Long Island Rail Road, and Metro-North Railroad systems by 2025, when congestion pricing revenue is expected to reach the projected $500 million.

“Six months in, it’s clear: congestion pricing has been a huge success, making life in New York better,” Governor Hochul said. “In New York, we dare to do big things, and this program represents just that – traffic is down throughout the region, business is booming, transit ridership is up, and we are making historic upgrades to our transit system. We’ve also fended off five months of unlawful attempts from the federal government to unwind this successful program and will keep fighting – and winning – in the courts. The cameras are staying on.”

MTA Chair and CEO Janno Lieber said, “Congestion relief is a massive success and validation of the initiative keeps pouring in. The program is achieving all of its goals in terms of traffic reduction, increased travel speeds, safety, noise reduction and more. And not only is Congestion Relief delivering all the projected benefits – and more – it’s also proving that New York State government can effectively execute major, ambitious initiatives that improve the quality of life in ways New Yorkers notice and appreciate.”

In addition to successfully fending off numerous legal challenges to congestion pricing, New York State and the MTA have defended the program against illegal attempts to end it by the Trump Administration and the USDOT. In the case of Metropolitan Transportation Authority v. Duffy, a preliminary injunction was issued in May, preventing the federal government from retaliating in retaliation and maintaining congestion pricing in place while additional judicial processes are ongoing.

Elephant and Castle Closing in the West Village After 52 Years

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, News, Openings & Closings

By Manhattan Real Estate Tracker, August 13, 2025

Elephant and Castle Closing in the West Village After 52 Years

After 52 years of operation, the Elephant & Castle restaurant located at 68 Greenwich Avenue will close its doors for good this Sunday, August 17.    Dr. George Schwarz started the restaurant in 1973 .  Here is a great article on the closing by Eater.

One Times Square Renovation Nearly Complete, Opening Fall 2025

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, News, Openings & Closings

One Times Square Renovation Nearly Complete, Opening Fall 2025

By Manhattan Real Estate Tracker, August 12, 2025

Manhattan Real Estate Tracker, August 11, 2025

The building at One Times Square is located at 1475 Broadway right off West 42nd Street in Times Square. Built in 1904, it was formerly known as the New York Times Building, the New York Times Tower or the Allied Chemical Tower. The building is 25 stories with a relatively small footprint. The tower building was originally built as the headquarters of The New York Times

One Times Square is one of the most valuable advertising venues in the world because of the significant cash generated by its signage. The annual New Year’s Eve “ball drop” is atop of the tower. The building has been owned by Jamestown L.P. since 1997.

The building formerly was the site of Walgreens which closed around 2021. A $500 million renovation of the building began in 2022. The newly renovated building will feature an observation deck, a museum space, and a glass exterior, and is scheduled to be completed in 2025. The website for the new project is onetimessquare.com.

Disclosure of Fees Under the City’s New FARE Act

Manhattan Real Estate TrackerLeave a commentNews, Residential Real Estate

By Manhattan Real Estate Tracker, August 10, 2025

On June 11, 2025, the Fairness in Apartment Rental Expenses, or FARE Act, went into effect. This law states that whoever hires the broker, pays the broker. It forbids brokers from charging tenants broker fees on behalf of landlords. Brokers who post listings with the landlord’s consent fall under this category. Other costs that the tenant must pay must be disclosed by landlords or their representatives in rental agreements and listings. More information can be found on the city’s website here.

There are two occasions when fees must be disclosed under the FARE Act. On the rental listing, fees that a prospective tenant must pay for the rental of an apartment must be conspicuously disclosed. These include application fees, and any other fees payable prior to lease signing. In addition, prior to lease signing, landlords or their agents must give tenants an itemized written disclosure of all fees the tenant must pay the landlord, or any person at the direction of the landlord, in connection with the rental of the apartment. The fees must include a written description, and the tenant must sign the itemized disclosure before signing a lease. Landlords or their agents must keep the signed disclosure for three years and give a copy to the tenant.

Elizabeth Street Garden Will Not be Developed by the City

Manhattan Real Estate TrackerLeave a commentCommercial Real Estate, News, Residential Real Estate

The Elizabeth Street Garden will not be Developed by the City

By Manhattan Real Estate Tracker, August 8, 2025

The Elizabeth Street Garden will remain a permanent public green space under a new agreement announced July 23, 2025 by Mayor Eric Adams.

The original proposal was for the city to build an affordable housing development on the site of the Elizabeth Street Garden. Now instead the city will construct more than 600 new affordable housing units across three alternate sites in Lower Manhattan including the Financial District, the Lower East Side, SoHo and Tribeca. The original plan for the site included 123 units of affordable senior housing and a new public garden space.

Mayor Adams stated, “The best way to tackle our city’s housing crisis is to build as much affordable housing as we can. The agreement announced today will help us meet that mission by creating more than five times the affordable housing originally planned while preserving a beloved local public space and expanding access to it.”

Rezoning efforts for three separate locations in the surrounding area at 156-166 Bowery in Nolita, 22 Suffolk St. on the Lower East Side and 100 Gold St. in the Financial District will be undertaken. The Bowery site in Nolita is anticipated to include at least 123 affordable apartments for seniors.

The Elizabeth Street Garden is a one-acre community sculpture garden in Nolita at Elizabeth Street between Prince and Spring Streets. The garden is owned by the city government and managed by the Elizabeth Street Garden (ESG) nonprofit and is available for the public for general use and community events.

Under the new agreement, the garden will expand its hours to the public from 8 a.m. to 8 p.m. and it is possible that it may become one of the city Department of Parks and Recreation’s green spaces. However, the city said it will retain the right to revisit plans for housing for the garden site if the rezoning for the three new alternate sites does not go forward.