- Former Gov. Eliot Spitzer won New York State approval to end rent-stabilized leases at 985 Fifth Avenue, clearing the way to demolish the 25-story rental building.
- Spitzer sued the state’s Division of Homes and Community Renewal, alleging it delayed his application; the fight followed 2023 landmarks approval to demolish the property.
- SLCE Architects’ design would replace the rental tower with 25 luxury condo units, adding to Spitzer’s roughly 1.5-million-square-foot Fifth Avenue residential portfolio.
Former New York Governor Eliot Spitzer has cleared the final hurdle to demolish 985 Fifth Avenue, an Upper East Side rental building, after suing the state to force a decision on his application, according to Commercial Observer. Spitzer alleged New York’s Division of Homes and Community Renewal (HCR) was sitting on his request to end the building’s rent-stabilized leases — a required step before redevelopment can begin. The state ultimately granted approval, ending a two-year process and clearing the way for Spitzer to move forward on a long-planned luxury condo project on one of Manhattan’s most sought-after residential corridors.
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How It Started
The fight traces back to 2023. That’s when the city’s Landmarks Preservation Commission approved Spitzer’s plan to demolish the 25-story rental property and replace it with condos.
Ending rent stabilization on the building’s remaining leases was the next step. The state review took roughly two years before approval finally came through.
Spitzer alleged the delay amounted to misconduct, as previously reported by The Real Deal. He argued that HCR had no legitimate reason to hold up the request.
Spitzer has owned 985 Fifth Avenue since at least 2018. The property is part of his portfolio of seven residential buildings totaling about 1.5 million square feet. The portfolio also includes 800 Fifth Avenue.
The Details
Spitzer Enterprises unveiled SLCE Architects’ designs in November 2025. The plan calls for 25 condo units, according to New York YIMBY.
The low unit count points to full-floor or near-full-floor layouts. That design is typical of the Upper East Side’s most expensive new construction.
Neither Spitzer nor an HCR spokesperson responded to requests for comment. As a result, the terms of the final approval remain largely undisclosed.
With state approval secured, Spitzer can move forward with demolition and construction. The previously approved landmarks plan requires no further regulatory review before groundbreaking.
Zooming Out
The case echoes other Manhattan battles over converting rent-stabilized rentals into condos. The 443 Greenwich conversion dispute offers another example.
Both cases show how difficult the path from rental housing to condos has become. Clearing tenants and ending rent stabilization can take longer than design or financing.
Why It Matters
The approval adds another luxury project to Manhattan’s condo pipeline. That pipeline already skews heavily toward high-end product, while entry-level supply remains limited.
The trend is also reshaping how the city taxes ultra-high-end buyers.
For CRE investors, the case highlights another risk. Ending rent stabilization in an occupied building remains one of the slowest and most litigation-prone steps in a conversion.
Spitzer’s decision to sue the state shows how much value developers place on project timelines. That’s especially true on Fifth Avenue, where land and existing properties command premium prices.
What’s Next
Spitzer can now begin demolition and construction on the SLCE-designed tower. The project will add 25 condo units to a market where entry-level supply remains scarce.
Watch for demolition permits, construction timelines, and pricing details. Tenant-displacement scrutiny will also be worth watching as the project moves forward.
