This week, Fairstead, one of the largest apartment landlords in the United States, faced internal disputes that have led to several legal battles. The company manages approximately $7.8 billion in assets and oversees 24,000 housing units across 28 states. A recent trial involving Fairstead included testimony from 10 witnesses and nearly 2,600 exhibits, providing insight into the rapid growth and resulting conflicts within the firm.
In Manhattan, major office developments are progressing at a slower pace. However, following the opening of JPMorgan Chase’s new office tower, attention has shifted to Vornado Realty Trust’s latest project. Vornado filed a construction permit application for a high-rise at 350 Park Avenue. The proposed building will have 62 stories and cover more than 2 million square feet. Partners on this development include Rudin Management and hedge fund Citadel, which has agreed to lease 850,000 square feet in the new tower.
Brooklyn saw a record-setting residential transaction when Eli Gindi sold his townhouse at 2126 East Fourth Street in Gravesend for $32 million. Property records list Victor Hakim, CEO and founder of Choice Home Warranty, as the buyer. This sale surpassed Brooklyn’s previous single-family home price record of $25.5 million set in 2020.
Andrew Farkas’ Island Capital is seeking buyers for the Lexington Hotel in Midtown East with an asking price of about $275 million for the property’s 725 rooms. The hotel was acquired by Farkas’ joint venture in 2021 for $185 million after being closed during the pandemic and renovated by its former owner DiamondRock Hospitality. It later reopened under Marriott International’s Autograph Collection brand.
The Lexington is considered the last major “big-box” hotel in its area and may benefit from nearby developments such as JPMorgan Chase’s headquarters.
This week also marks one year since New York City Council approved the Fairness in Apartment Rental Expenses (FARE) Act, which prohibits requiring tenants to pay broker fees if they did not hire those brokers themselves. Supporters argued that previous practices allowed landlords to raise rents during renewals because tenants wanted to avoid upfront costs. Opponents like the Real Estate Board of New York (REBNY) argue that the law has contributed to rising rents and fewer public listings; REBNY is currently awaiting an appeal on their legal challenge against the act.
With five months since enactment of FARE Act provisions, there is ongoing debate over its impact on New York City’s residential market.
