Rendering c/o Studio Sofield and SLCE Architects
Six rent-stabilized tenants have spent more than two years as the only thing standing between a Fifth Avenue rental tower and the wrecking ball. The state agency holding their fate seemed in no hurry to decide anything. Then their landlord sued it, and the decision arrived in under a month.
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A rent administrator at the state Division of Homes and Community Renewal ruled on Aug. 19 that Eliot Spitzer’s firm can decline to renew the six rent-stabilized leases at 985 Fifth Avenue, between East 79th and East 80th streets. That clears the last regulatory hurdle to tearing down the 46-unit rental his late father, Bernard Spitzer, built in 1970. Spitzer had filed suit against the agency 26 days earlier, after waiting 26 months for an answer, The Real Deal reported.Spitzer applied in 2024 for permission not to renew the six leases, a step required before any building with rent-stabilized tenants can come down. His July lawsuit accused the agency of “potential intentional misconduct” for letting the applications sit, and he told the outlet afterward that the lesson developers will draw is that you can get a demolition permit out of the agency, but you may have to sue for it. The agency, now under Gov. Kathy Hochul, didn’t respond to a request for comment from Commercial Observer, which also reported the approval.
Getting there took one more fight. Attorney Adam Leitman Bailey, representing tenant Stephanie Phillips, filed an emergency complaint with the agency this past winter after Phillips received a lease renewal offer in February. Spitzer’s side said the offer went out by mistake, and the agency sided with the developer on July 23, noting that Phillips had returned the renewal unsigned three days after it arrived. Bailey is a familiar name here. He also represented the co-op next door at 980 Fifth Avenue in the adverse possession fight over a 350-square-foot concrete pit between the two buildings, a dispute that grew personal enough to involve an order of protection request and a bid to discipline Bailey’s firm.
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The building itself has also changed since we last covered the plans. The Landmarks Preservation Commission signed off on the demolition in 2023, then approved a revised, taller version in November 2025 after the City of Yes zoning overhaul allowed for more height. The Studio Sofield and SLCE Architects design now rises 20 stories instead of 19, with higher ceilings and taller windows, CityRealty reported. Spitzer Enterprises bought $7 million in affordable housing certificates for use within Community Board 8 rather than including affordable units on site.The math for the block hasn’t changed, though. When the plans were first filed in November 2022, the swap was 46 rental apartments for 26 condos. Nearly four years and several lawsuits later, it still is.
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