Former New York Governor Eliot Spitzer has received state approval to demolish and redevelop the property at 985 Fifth Avenue after a legal dispute with the state. Spitzer had filed a lawsuit because the state’s Division of Homes and Community Renewal (HCR) was delaying approval of an application not to renew rent-stabilised leases in the building, a necessary step before the planned redevelopment.
Spitzer eventually secured the state's consent. The two-year requirement to terminate the rent-stabilised leases followed the approval in 2023 by the New York City Landmarks Preservation Commission to demolish the 25-storey rental property and erect luxury condominiums in its place. Spitzer alleged possible misconduct in the lawsuit, as reported by The Real Deal.
Despite the delay, Spitzer’s company, Spitzer Enterprises, has advanced other aspects of the project. Designs by SLCE Architects for the property, which according to New York YIMBY envision 25 condominium units, were unveiled as early as November 2025. The development of this type of luxury housing in the high-priced Upper East Side reflects the ongoing trend of converting older rental properties into modern condominiums.
The former governor, who resigned in 2008, has owned the property since at least 2018. At that time, he acquired seven residential buildings in the city, including 800 Fifth Avenue, with a total area of 1.5 million square feet. This commitment underscores his strategy of investing in prominent real estate locations in New York City and repositioning them.
HCR, now under the administration of Governor Kathy Hochul, did not immediately respond to a request for comment. Similarly, Spitzer could not be reached for further comment. However, the decision is expected to set a precedent for similar redevelopment projects in New York City, particularly concerning the handling of rent-stabilised units.
