Albany Weighing More Taxes for Real Estate in New York City
By Manhattan Real Estate Tracker, May 24, 2026
High-value NYC homes are the focus of Albany’s 2026 real estate tax proposals, which aim to reduce municipal budget shortfalls. A Pied-à-Terre tax and a 1% all-cash purchase tax are the two primary tax ideas that state legislators have discussed; however, the latter has encountered significant opposition and may be eliminated from the budget.
The Tax on Pied-à-Terre: Non-primary residences are the object of this yearly surcharge. It is intended to raise around $500 million a year to assist address the budget gap in New York City, with an initial focus on luxury second residences. A sliding-scale annual levy for flats with high assessed market values was proposed by Mayor Zohran Mamdani and Governor Kathy Hochul.
The 1% All-Cash Purchase Tax: A one-time transaction tax on upscale, all-cash purchasers was also proposed by state legislators. The proposal is to impose an additional 1% tax on the total sale price for buyers who purchase a NYC property (main or secondary) without a mortgage for more than $1 million.
Real estate organizations like the Real Estate Board of New York strongly oppose these taxes, which could be removed from the final budget. Visit the official New York State Governor’s Newsroom to keep up with current state budget updates.
According to the U.S. Department of Labor’s Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent on a seasonally adjusted basis in April, after rising 0.9 percent in March, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 3.8 percent before seasonal adjustment. The index for energy rose 3.8 percent in April, accounting for over forty percent of the monthly all-items increase. The shelter index also increased in April, rising 0.6 percent. The index for food increased 0.5 percent over the month as the index for food at home rose 0.7 percent and the index for food away from home increased 0.2 percent.
Seasonally adjusted one-month change in CPI for all urban consumers (U.S. Department of Labor Bureau of Labor Statistics):
The Community Opportunity to Purchase Act (COPA) may be coming back in a modified form. According to the NYC Commununity Land Initiative, “The Community Opportunity to Purchase Act (COPA) is a proven tool to expand and preserve the supply of affordable housing and combat displacement. NYC Int. 902 is modeled on successful Opportunity to Purchase legislation implemented in San Francisco, Washington, D.C., and other jurisdictions and co-sponsored by 32 City Council Members. More than 120 community, tenant, and affordable housing organizations and coalitions – including the NYC Community Land Initiative (NYCCLI), ANHD, and Housing Justice for All – support COPA.”
NYCCLI states that when a landlord sells a multifamily property, COPA offers eligible organizations, such as community land trusts (CLTs), the first opportunity to bid. In particular, Int. 902 establishes a procedure and deadline for organizations to submit competitive offers: 1. Before listing an apartment building for sale, a landlord is required to give the NYC Department of Housing Preservation and Development (HPD) basic information on the building’s finances and rent roll. 2. Qualified nonprofits have 120 days to submit a competitive bid for the facility and 60 days to notify HPD and the owner of their intention to buy. 3. The landlord may sell the property on the open market if a nonprofit does not indicate that they intend to buy it or if their offer is turned down.
Months after the Council failed to override former Mayor Eric Adams’ veto, Sandy Nurse, a member of the City Council, introduced a revised version of the bill that would give city-approved nonprofits (as well as joint ventures between nonprofits and for-profit developers) the first opportunity to purchase certain distressed multifamily buildings and properties with expiring affordability restrictions. Ms. Nurse described the most recent version as “stronger and more targeted,” with shorter deadlines and more stringent eligibility standards. Buildings with four or more units that satisfy at least one of several distress criteria—such as an average of three or more hazardous violations per unit per year (up from one in the previous version), inclusion in the city’s Alternative Enforcement Program, in rem foreclosure status, unresolved underlying-condition violations lasting at least a year, or a recent denial of a certification of no harassment—would be covered by the bill.
Although the amended law exempts 421a properties and concentrates on smaller rent-regulated assets, it would also encompass buildings with fewer than 100 units that are subject to expiration affordability constraints within two years. Nurse claimed that cutting the deadline by 15 days would have little practical impact, particularly since the bill permits organizations to sue owners for suspected noncompliance, which might cause months-long delays in purchases. One significant modification was that owners would no longer be subject to vague civil fines imposed by judges for breaking the law. Instead, owners who neglect to give the necessary notice of intent to sell would be subject to fines of up to 15% of the sale price. The Mamdani administration supports the bill.
Former ABC Lincoln Center Complex to be Developed by Extell
By Manhattan Real Estate Tracker, April 27, 2026
Manhattan Real Estate Tracker, 2026
The ten-story structure at 147 Columbus Avenue, which was once a part of the ABC/Disney campus, is currently being demolished by Extell Development to make way for a significant residential project. Plans for an 86-story, 1,198-foot residential supertall skyscraper at 80 West 67th Street, which is a component of the same block-wide, multi-phase premium residential transformation project, were submitted by Extell Development as of April 2026. The building at 147 Columbus Avenue, which formerly housed the local ABC-7 news studio on the ground floor where pedestrians could watch the live newscast from the street, has already been demolished.
In addition to 147 Columbus Avenue, the 2.4-acre old ABC/Disney site includes 149 Columbus Avenue and a number of 66th and 67th Street residences. The demolition that began last year will continue this year. The project’s height has drawn criticism from the community as possible proposals call for 25-story structures, luxury homes, and some reasonably priced apartments. The building will be close to the height of the Empire State Building.
The construction is anticipated to take place between 2027 and 2030. The NYC Department of Transportation has approved the maintenance of pedestrian, bicycle, and vehicle routes surrounding the building site. Flagmen will man the entry and departure points for construction trucks.
Gary Barnett of Extell, provided neighborhood members with information during a community board meeting last year. The structure is 1,200 feet tall. We want to do that,” he informed the community board. A structure of such height would be over twice the size of 200 Amsterdam Ave. and around one-third the height of 50 West 66th St., the two highest structures in the area.
There is a limit on the square footage of properties that can be constructed in the city. If that amount is not reached, the remaining portion may be transferred among properties owned by the same developer or sold as air rights, according to city regulations. In order to optimize the height of the possible residential building, Extell is merging the unutilized air rights for six structures.
The former ABC properties are not included in the Special Lincoln Square District, which has building regulations, in contrast to the remainder of this area of the Upper West Side. Guidelines for height are part of that.
The proposed Caesars Palace Times Square casino was struck down by the Community Advisory Committee having rejected it 4-2 in September 2025. The community citied traffic issues and the economic impact on the theater district. This resulted in ending , therefore halting SL Green Realty, Caesars Entertainment, and Roc Nation’s bid for a state gaming license. A large casino was proposed at 1515 Broadway, which is currently home to the Minskoff Theatre and owned by SL Green Realty. The New York State Gaming Commission approved three casinos, Bally’s Bronx at Ferry Point near Throgs Neck, Hard Rock Metropolitan Park in Willets Point, Queens and Resorts World New York City at Aqueduct Racetrack. These casinos are going to open by 2030.
Barbetta, the Oldest Italian Restaurant in Manhattan Closes Friday, February 27, 2026
By Manhattan Real Estate Tracker, 2026
The oldest Italian restaurant in Manhattan is closing tomorrow after 120 years on Restaurant Row at 321 West 46th Street. The owner, Laura Maioglio passed away last month.
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.
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.
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
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
By Manhattan Real Estate Tracker, August 18, 2025
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.
