School is back in session—and so is New York City real estate. From long-running legal battles to new leases and shifting development activity, this week brought a mix of resolution, opportunity, and market uncertainty.
Key Highlights This Week
Herald Square Legal Saga Ends JEMB Realty finally resolved its four-year battle with ASA College over unpaid rent at 1293 Broadway. After lawsuits and judgments totaling more than $18 million against ASA and its owner Alex Shchegol, JEMB may now recover funds. Yeshiva University has since taken over the former ASA space.
Upper West Side School Property Hits Market The shuttered Manhattan Country School building at 150 West 85th Street is now for sale, marketed by Bob Knakal. Once appraised at $39M in 2021, the property carries a complicated backstory: the school’s failed expansion, pandemic setbacks, and foreclosure proceedings by Flushing Bank, which preceded bankruptcy filings.
Sephora Expands in East Village Sephora inked a lease for 7,800 square feet at 1 St. Mark’s Place, a boutique office and retail project developed by the late Brandon Miller’s Real Estate Equities Corporation. The project survived foreclosure attempts and loan defaults, making the lease a stabilizing milestone for the property.
Development Contracts Down, Volume Up August saw a 9% drop in contract signings, but dollar volume rose 13% to $597M, fueled by an $87.5M penthouse deal at 140 Jane Street. Lagging numbers at 80 Clarkson Street—a 112-unit development still awaiting reported contracts—added to the slowdown. Broader factors include tight inventory, buyer rate-watch behavior, and uncertainty surrounding the upcoming mayoral election.
Frequently Asked Questions
Q: What’s happening with 150 West 85th Street?
A: The Upper West Side property is being marketed for sale after foreclosure. Its market value will depend on interest from both educational institutions and potential residential or mixed-use developers.
Q: Does Sephora’s lease signal retail strength?
A: Yes. National retailers continue to target NYC flagship-style locations, with East Village offering a blend of destination traffic and neighborhood vibrancy.
Q: Why did development contracts fall in August?
A: The slowdown reflects a shortage of new product hitting the market and cautious buyers waiting on rate cuts and political clarity.
