Eliot Spitzer Gains State Approval to Redevelop 985 Fifth Avenue After Legal Bout

Eliot Spitzer Gains State Approval to Redevelop 985 Fifth Avenue After Legal Bout By Mark Hallum August 25, 2026 5:23 pm reprintsFormer New York Gov. Eliot Spitzer will finally get to demolish 985 Fifth Avenue after suing the state to obtain approval. Spitzer claimed that the state’s Division of Homes and Community Renewal (HCR) was delaying the approval of an application to not renew rent-stabilized leases in the building, a necessary step before the property could be redeveloped. Spitzer ultimately won the state’s blessing. The two-year request to end the rent-stabilized leases on the property followed approval from the New York City Landmarks Preservation Commission in 2023 to take a wrecking ball to the 25-story rental property and construct luxury condominiums in its place. Spitzer alleged potential misconduct in the lawsuit, reported by The Real Deal. Spitzer could not be reached for comment. HCR, now under the administration of Gov. Kathy Hochul, did not immediately respond to a request for comment. Spitzer’s Spitzer Enterprises has been advancing on other aspects of the project despite the delay, unveiling designs by SLCE Architects for the property in November 2025 which would yield 25 condo units, according to New York YIMBY. The former governor, who resigned in 2008 during a prostitution scandal, has owned the property since at least 2018 after buying seven residential buildings in the city, including 800 Fifth Avenue, with a total of 1.5 million square feet. Mark Hallum can be reached at mhallum@commercialobserver.com.