Cover Feature Newswire Management

Rosenberg & Estis, P.C.: 50 Years at the Forefront of New York City’s Real Estate Industry

Michael E. Lefkotwitz and Gary M. Rosenberg (Photo courtesy of Rosenberg & Estis)

When Gary M. Rosenberg founded Rosenberg & Estis P.C., in 1975 to represent New York City residential property owners, the real estate industry was very different than it is today. What was then a local industry with individual and family owners has evolved dramatically into a global asset class with large institutional players.

“In the 1970s, insurance companies were among the only institutional real estate owners, along with several family owners who had developed large portfolios of commercial properties,” said Rosenberg. “The real estate landscape is now completely different, operating as a highly sophisticated sector of international finance.”

As the industry has changed, so has R&E, growing in size and scope to offer a comprehensive suite of services for all industry members. Now, as the firm celebrates its 50th anniversary, R&E stands as the city’s leading full-service real estate law firm, while remaining the city’s foremost legal expert on the dynamics of the residential market.

The firm has 95 attorneys and has received recognitions from industry publications including the “New York Law Journal,” “Crain’s New York Business” and “Law360,” among others. In both 2018 and 2020, the firm’s Litigation team was named Real Estate Litigation Department of the Year by the “New York Law Journal.” R&E was named among the top workplaces in the city in 2023 and 2024 by “Crain’s New York,” and in 2024 by “U.S. News & World Report.”

Over its 50-year history, R&E’s litigators have represented the city’s premier owners and developers, securing dozens of major industry victories in New York State Supreme Court, the Appellate Division and the Court of Appeals. The firm’s litigation efforts have advanced the interests of all industry members, helping to create law on important regulatory issues. Its Transactional Department has helped New York’s leading developers assemble, vacate, finance and develop buildings that have transformed the city.

Growing with the Industry
Among R&E’s initial clients were the Bronx Realty Advisory Board and the Community Housing Improvement Program, organizations that were largely comprised of individual owners of a small number of residential buildings. These were small operators, but they required the same level of representation as any large corporation.

While landlord/tenant work was the foundation of the firm, Rosenberg and the late Warren A. Estis made a strategic decision to broaden representation to all aspects of real estate, offering clients comprehensive resources and operating at the highest level.

“Having access to a broad range of expertise within the firm has allowed us to tackle complex, multi-faceted issues for our clients,” said Michael E. Lefkowitz, who joined R&E in 1987 and now serves as managing member and one of the heads of the firm’s transactional department. “Our strategy was simple: provide comprehensive services that are highly targeted to the New York City real estate industry.”

In the 1980s and 1990s, R&E positioned itself to provide critical services during the rebirth of the New York City office market. Notably, the firm launched a transaction practice and began working with major developers, including The Durst Organization, Vornado and The Brodsky Organization, on ground-up developments and transactions.

R&E’s depth of experience representing small landlords on tenant issues positioned it to provide critical legal services during the rise of the REITs, which were able to acquire tens of thousands of rental housing units through the efficient use of financing. When private equity entered the market, R&E had established itself as a leading firm with expertise in mid-market deals, from $25 million to $150 million.

“Larger institutions retained our firm to provide first-hand insight on regulatory issues, due diligence, compliance and other local issues,” said former Member and current Special Counsel Blaine Z. Schwadel. “These entities benefited from our history and on-the-ground experience as they acquired large portfolios of multifamily assets.”

Following 9/11, R&E began representing insurance companies as they tried to assess property damage from the terrorist attacks. The firm has continued to adapt in recent years, acting as a leader in the EB-5 space, facilitating the first and largest commercial property assessed clean energy (C-PACE) loan and helping owners and lenders work through the post-pandemic distress in the office market. R&E is now positioning itself as an industry leader in diversity, most recently hosting the inaugural symposium of the Metropolitan Black Bar Association.

“The history of the New York City real estate industry has been dominated by men, but we have worked to bring new voices into the conversation,” said Member Luise A. Barrack. “We believe that different skills and perspectives enable us to provide more effective representation.”

Monumental Projects
The assemblage and development of two full-block projects in Manhattan by The Durst Organization stand out among the transformational development projects facilitated by R&E. This includes 3.5 million square feet of office space in two buildings on the block between Avenue of the Americas and Broadway and between 42nd and 43rd Streets and 1.5 million square feet of residential development in three properties encompassing the entire block between 11th and 12th Avenues and between 57th and 58th Streets. R&E provided comprehensive legal services, including assemblage, litigation and financing, for both developments.

4 Times Square
The redevelopment of the block between 42nd and 43rd Streets, which began following extensive litigation related to the 42nd Street Development Project, was transformative, not only for Times Square, but for the city. R&E managed the assemblage, acquisition and financing for the construction of 4 Times Square, the 48-story, 1.6 million-square-foot property located on Broadway between 42nd and 43rd Streets. The firm also managed the retail leasing for the project, which was the first major new skyscraper in Times Square, and which ushered in a new era of development for 42nd Street and the surrounding areas.

One Bryant Park
R&E was also deeply involved in the complex assemblage and development of the eastern portion of the same block along Avenue of the Americas, a lengthy process that ran from the late 1980s to 2004. Notably, the assemblage of this site included the demolition of the 13-story Diplomat Hotel, which was operating as a single-room occupancy (SRO) hotel at the time and required extensive efforts to vacate. R&E also assisted with the purchase of Henry Miller’s Theater, now the Stephen Sondheim Theater, helping to execute a complex plan to demolish and rebuild the landmarked theater while maintaining its façade.

At the end of the One Bryant Park assemblage, but prior to construction, New York City was paralyzed by the terrorist attacks of 9/11. This horrific episode threatened to undermine New York City’s position as the financial capital of the nation, as many banks were concerned over the loss of business continuity and began exploring alternative locations for all or part of their operations. However, R&E, working with The Durst Organization and Bank of America (BOA), obtained the assistance of the Empire State Development Corporation and the NYC Economic Development Corporation.

This collaborative effort resulted in the establishment of BOA’s global headquarters for investment banking in a new, 50-story tower, the Bank of America Tower, or One Bryant Park. This show of faith by the bank and by The Durst Organization sent a powerful message of confidence, opening the way for others to recommit to the city at a time when many believed tall buildings would no longer be built.

To facilitate the project with New York City and New York State, The Durst Organization had to secure Bank of America’s commitment at a very early stage in the project, so early, in fact, that it was impossible to determine the building specifications or a rent for the space.

“R&E demonstrated its ingenuity by developing a complex rent formula based on building costs in the yet-to-be-designed property, enabling the two joint venture partners to sign a binding lease while the construction plans were still in a preliminary state,” said Member Richard L. Sussman. “This is the way we approach all challenges.”

R&E then led the effort to obtain a payment in lieu of taxes (PILOT) and federally subsidized Liberty Bonds for the project. R&E led the creation of the first financing that combined tax exempt Liberty Bonds and taxable financing as part of what was then the city’s largest construction loan – a total of $4.2 million.

11th Avenue to 12th Avenue, 57th Street to 58th Street
The development by The Durst Organization of the block between 11th and 12th Avenues, and between 57th and 58th streets, includes the fascinating history of the estate of Thomas Appleby, dating back to the 1850s. Appleby had a license with the city to collect and dump fly ash into the Hudson River. As part of the agreement, he could keep any land created by this landfill effort. Over the years, this agreement led to the creation of significant parcels of land, beginning at 70th Street and running all the way down to approximately 39th Street. More than 100 years later, the estate still owns much of this property. However, the beneficiaries are not developers and hoped to generate more revenue from their land at 57th Street than they were receiving from the existing small commercial buildings.

R&E negotiated a net lease for the entire block on behalf of The Durst Organization, followed by the creation of the Helena, a 600-unit, 38-story rental tower. Following an extensive effort to rezone the block for residential use, there are now almost 2,000 units of residential housing. R&E led the construction financing and permanent loan financing as well as all of the retail leasing for the project.

Litigation Leader
R&E has a long-established reputation as a leading real estate litigation firm, defending the rights of industry members while making law on critical industry issues. In Pultz v Economakis in 2008, the firm secured a Court of Appeals ruling that the Rent Stabilization Law does not limit the number of apartments a landlord can recover for his or her own use. In 2020’s Regina Metro. Co. LLC v DHCR (New York Division of Housing & Community Renewal), the Court of Appeals ruled that retroactive application of HSTPA overcharge amendments against landlords violates due process. More recently, in Casey v Whitehouse Estates Inc. in 2023, the Court of Appeals held that DHCR’s default rent formula cannot be used where the landlord’s alleged fraud took place after the base date, and thus could not have rendered the base date rent unreliable.

The firm still vigorously represents real estate entities, honoring the legacy of Warren Estis, one of the city’s fiercest litigators, by securing groundbreaking decisions for clients despite a hostile regulatory environment.

R&E and the Future of the Real Estate Industry
By providing superior legal services for all elements of the industry and evolving to support its clients as they face new challenges, R&E has remained at the forefront of a changing industry. The firm’s deep history, pool of talent and its singular focus has positioned it to serve as a powerful advocate for the entire real estate community, from owners and developers to investors and lenders.