NYC & NY State Real Estate Weekly Roundup
**Date:** Sunday, August 10, 2025
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1. **Office Confidence Returns: \$1.3B Loan for 4 Times Square**
The Durst Organization secured a massive \$1.3 billion CMBS loan for the One Five One (formerly 4 Times Square) skyscraper—among the largest office financings of 2025. The deal underscores renewed investor confidence in Class A office space post-pandemic. ([Reuters][1])
2. **Third Avenue Rebounds: From Office to Mixed-Use Resurgence**
A CBRE report notes a notable shift in Manhattan’s East Side—especially Third Avenue—where office vacancy has dropped from 25.3% (late 2022) to 18.1% in early 2025. Office-to-residential conversions and major tenant renewals are driving the rebalance. ([New York Post][2])
3. **A Historic Landmark for Sale: Limelight Club’s Former Church**
The former Church of the Holy Communion—once home to the infamous Limelight nightclub—is now vacant and listed for sale or lease. Its storied past includes uses as a research facility, bistro, and pop-up venue; future plans remain speculative. ([Architectural Digest][3])
4. **Oheka Castle Files for Bankruptcy**
Long Island’s iconic Oheka Castle, known for hosting lavish weddings and appearing in film and TV productions, has filed for Chapter 11 with just \$57 in its bank account and \$63.5 million in debt. Despite financial distress, all bookings remain intact as the owner seeks reorganization. ([New York Post][4])
5. **Hudson Valley Housing Struggles Amplified**
Two reports reveal that nearly half of Hudson Valley residents are cutting back on essentials like food and healthcare to afford housing. Over a third have considered leaving the state. Income growth has failed to keep pace with housing costs—especially in counties like Ulster and Columbia.
6. **Massive Midtown Rezoning Greenlighted**
The City Council approved the largest residential rezoning in 20 years—Midtown South is set to gain nearly 10,000 new homes. The update paves the way for expanded density and wider housing options in a long-stagnant district.
7. **Market Snapshot: Manhattan Median Home Prices & Speedier Sales**
Redfin data shows Manhattan’s median home price increased 3.5% year-over-year to \$880K in June. Homes are selling faster, with the median days on market shrinking from 57 to 51 days YoY.
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Analysis & Forward-Looking Perspective
* **Office sector strength** is making a comeback, especially for high-amenity buildings, bolstered by strong capitalization.
* **Mixed-use conversions** are reshaping Midtown South and Third Avenue, signaling strategic optimism for adaptability.
* **Luxury distress emerges** in cultural and event spaces (e.g., Oheka Castle), despite their iconic status.
* **Regional affordability crises persist**, threatening long-term retention of middle-income households.
* **Rezoning and development policy**—such as Midtown South—may offer critical supply relief in high-demand neighborhoods.
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