- Panelists at a Brooklyn real estate conference doubted the legality of the Rent Guidelines Board’s freeze, effective Oct. 1, and expect downsides for the affordable housing market.
- Deputy Mayor Leila Bozorg said more than half of city renters are rent-burdened and pointed to a $5.6B plan to create 200,000 affordable homes and preserve another 200,000.
- A former Macy’s at 422 Fulton Street is becoming BKX, a 440,000 SF entertainment complex that developer Albert Laboz expects to be a catalyst for the corridor.
Two topics ran the show at The Only Brooklyn real estate conference, per Commercial Observer: the mayor’s rent freeze and a retail comeback on Fulton Street.
Brokerage TerraCRG sponsored the gathering, held at BRIC on Fulton Street downtown.
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Officials Frame the Housing Gap
Borough President Antonio Reynoso and Deputy Mayor Leila Bozorg, who oversees housing and planning, gave opening remarks. Bozorg described a new phase of housing production as faster land use approvals roll out across 12 districts.
By her account, a majority of city renters spend over 30% of income on rent, and many spend half. The administration’s Block-by-Block plan, valued at $5.6B, aims to create 200,000 affordable homes and preserve 200,000 more.
Panelists Doubt the Freeze
The multifamily panel included Jay Greenberg of Z+G Property Group, Rick Gropper of Camber Property Group, Matthew Cosentino of TerraCRG and Peter Hungerford of PH Realty Capital. They questioned whether the rent freeze, which took effect Oct. 1, is legal, and expect significant downsides for affordable housing.
Cosentino said he expects the freeze to be ruled unlawful but does not think the outcome will matter much. He said that if he were mayor, he would have pushed a half-point to 1.5-point increase instead, and that even a 1% increase would only modestly help owners of thousands of units.
Fulton Street Gets a Reboot
Albert Laboz of United American Land, speaking on the Downtown Brooklyn panel, drew on 40 years in the neighborhood. He pointed to the former Macy’s at 422 Fulton Street, which is being converted into a four-story retail atrium and entertainment complex called BKX.
Laboz said he expects the project to catalyze change along Fulton Street. He said off-price chains such as T.J. Maxx or Ross could sign tomorrow, and he would welcome them elsewhere, just not on this block.
Why It Matters
The conversations show two tracks in Brooklyn. Multifamily owners are focused on the freeze and its legal risk, while retail and mixed-use developers see an opening to reposition a downtown corridor.
What’s Next
The freeze faces a lawsuit, and its fate will shape underwriting for rent-stabilized properties. On Fulton Street, watch how BKX’s tenant mix signals the corridor’s direction.
