Are you a high-road landlord or a low-road landlord?
That’s the question owners are being faced with after Mayor Zohran Mamdani’s much-anticipated “rental ripoff” report came out this week. It’s a small but important nomenclature change. Instead of ripping into a vague, undefined group of “negligent” rent-stabilized landlords, the mayor has created two camps.
High-road owners listen to tenants, respond to issues and communicate openly with city officials and lenders. Low-road landlords, however, “speculate on critical housing infrastructure using high risk, high reward practices that rely on evictions, disinvestment, or political games to make a profit from housing rather than ensuring long-term stability,” the report writes.
This report was released after months of controversial in-person events where tenants are asked to come and tell the city all the problems plaguing their rent-stabilized buildings. Landlords tried to tell their side of the story — some even made it into a theatrical event — but it was clear from the get-go that this campaign was a way for the Mamdani administration to put on a show for tenants, and fulfill one of his core campaign promises.
The big question is: what comes next? The report released this week details many recommendations, including beefing up the Department of Buildings to make for more regular inspections and enforcement. But many of the recommendations will require City Council buy-in and legislative change. That’s easier said than done.
But much more happened this week than the release of a report many landlords have been fearing. Read on to catch up on all this week’s real estate news.
David Zaslav seeks to buy Mohawk Day Camp for $68M
Simad Holdings is beginning to offload its portfolio. The firm, which owns 30 popular U.S. summer camps around the country, found itself in dire financial straits after revealing it would default on debt payments on $214 million of bonds in Israel. It has since filed for bankruptcy.
Last week, Simad, founded by David and Michael Shabsels, sold one of its Catskills businesses, Camp Achim, to its existing camp operator. This week Warner Bros. Discovery CEO David Zaslav made a $68 million stalking horse bid to purchase Mohawk Day Camp in Westchester County.
“This is a personal family investment that reflects our lifelong belief that summer camp can be a wonderful part of a child’s growth, and Mohawk’s history as a successful camp experience for so many kids, including our own,” a spokesperson for Warner Bros said on behalf of Zaslav.
Neither proposed sale has been approved by a bankruptcy court.
Chris Pine sues Brooklyn townhouse developer over Cobble Hill rental
The Shabselses aren’t the only ones dealing with legal woes. Actor Chris Pine — best known for his role as Captain James T. Kirk on “Star Trek” — filed a suit against Eckstrom Development’s Carlos Saavedra over $100,000 in unpaid fees.
According to the suit, Pine paid the sum while the two were negotiating a seven-week lease for the property at 487 Henry Street. The actor allegedly paid the developer a security deposit, first month of rent and pet deposit, but only received back the latter.
In a statement, an attorney representing Saavedra, Russell Wolfson, referred to the claims as a “private contractual matter” and said the lawsuit “tells only one side and does not reflect the complete story.”
Lawsuit accuses ex-DCAS official Jesse Hamilton, Cushman broker Diana Boutross of $250K shakedown
Two infamous Eric Adams cronies seem to be back in legal hot water. Former city official Jesse Hamilton and veteran Cushman & Wakefield broker Diana Boutross are being sued over alleged side payments they demanded while working on a city leasing deal.
Staten Island businessman Mazen Dayem is suing Hamilton, Boutross, Cushman & Wakefield and landlords Madison Capital and Salmar Properties, accusing them of orchestrating a scheme to derail his consulting agreement on two city leases at 850 Third Avenue in Brooklyn.
Dayem claims he was hired as a contractor to help with lease negotiations at the building. But then Hamilton and Boutross allegedly stepped in and told Dayem to pay them if he wanted the proposed leasing deals to be finalized. Dayem also alleges various parties in the transaction attempted to freeze him out of the deals.
This isn’t Dayem’s only noteworthy lawsuit. In 2017, he made headlines after suing his father-in-law over what he claimed was an elaborate campaign of psychological torment involving a bushy toupee.
Pfizer building’s column scare tests Midtown East’s biggest conversion bet
Structural failures at MetroLoft’s conversion of the former Pfizer Headquarters building last week made national headlines. It wasn’t just a large-scale construction project that appeared to be buckling — it was the largest office-to-residential conversion project in the country.
The behemoth project aims to convert the aging office building into 1,600 apartment units. Before last week’s fiasco, it was one of the most anticipated new developments in the city. But will all the headlines hurt leasing?
Multiple developers spoke with The Real Deal about what this could do to the marketing of the development. While most aren’t too worried, they raised some red flags about the completion deadline as well as tenant discomfort with moving into a building known for construction defects.
“That’s a big, big building. They need to start collecting cash flow,” developer Andrew Heiberger said.
