Strategic pause – by Shallini Mehra and Chirag Doshi

August 12th 2025

Many investors are in a period of strategic pause as New York City’s mayoral race approaches. A major inflection point came with the Democratic primary victory of Zohran Mamdani, a staunch tenant advocate, with a progressive housing platform which supports rent freezes for rent stabilized units. Although these orders are rarely enacted, this has sent ripples across the multifamily investment landscape.

With the restrictive framework of the 2019 HSTPA Act in full motion, the prospect of further political pressure on rent growth is deeply unsettling. Many buyers and sellers are shifting in/out of state, focusing on deals with fewer political strings and many are waiting on the sidelines, earning 4+% in the banks.

Recent transactions often involve newer assets with tax benefits enabling free-market status after the abatement expires or assets with a significant portion of free-market units, both appealing to investors less affected by current market trends. Chirag Doshi closed the $66.26 million sale of 56 North 9^th St. in Williamsburg. This 2018 construction, 99,878 s/f luxury asset features a 25-year 421A tax abatement, along with durable retail leases with a 10-year WALT. Lipa Lieberman, Amit Doshi, and Shallini Mehra recently sold The Westbourne, a blockfront of five pristine pre-war elevator buildings on West 137^th St. The $62 million deal included 183 units (62% free market) and a Duane Reade along with $5 million in renovations and amenities uncommon to most Northern Manhattan properties. 

As rates stabilize and select lenders cautiously re-enter the market, underwriting rent-stabilized assets remains an uphill battle. Moving forward, investors will continue to pursue quality core and core-plus assets at a measured pace while waiting for greater political clarity regarding NYC’s multifamily housing market.

Shallini Mehra is a managing director and Chirag Doshi is a vice president at Meridian Investment Sales, New York, N.Y.