Sergey Brin is getting out of the New York City housing market before the rent freeze
Steafitters Local 638 president Brian Hunt discusses the growing frustration among blue-collar union members with Democratic politicians and socialist policies in 'The Bottom Line.'
Months before New York City approved a historic two-year rent freeze, Google co-founder Sergey Brin quietly exited a struggling real estate fund that lost heavily.
In December, Brin sold his stake back to A&E Real Estate, the fund manager, for six cents on the dollar, according to documents obtained by Bloomberg.
The fund owns 5,900 rental housing units, and Brin's stake is worth an estimated $79 million, a drop in the bucket when viewed next to his $280 billion net worth.
“IA&E bought out one of our long-term investors, who was willing to accept six cents on the dollar in their original equity investment to diversify away from the New York City multifamily sector,” a company representative told Bloomberg in a statement.
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Sergey Brin at the 11th Annual Awards Ceremony held at the Barker Hanger on April 5, 2025, in Santa Monica, California. (Gilbert Flores/Variety via Getty Images)
“The simple and most troubling truth for renters is that institutional capital — both equity investors and lenders — are fleeing the New York City rental apartment sector,” continued A&E's representative, according to Bloomberg. “They understand that New York is in a disaster zone.”
It's unclear how much Brin, 52, invested in the startup, what percentage of the fund he owned or how much A&E paid to get the billionaire's stake back.
Brin's move into the New York City rental market comes a month after Zohran Mamdani was elected mayor in a bid to freeze 1 million rental units during his term.
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New York City Mayor Zohran Mamdani speaks at a rally at union headquarters in Manhattan on June 25, 2026. (Spencer Platt/Getty Images)
Mamdani followed through on that promise last week, when the Housing Guidelines Board voted for a 0% rent increase for stable leases signed or renewed between October 1, 2026, and September 30, 2027. Mamdani appointed six of the nine members to the board.
IA&E Real Estate, one of New York City's largest multifamily landlords, had been struggling financially for a long time before the latest rent freeze.
A state law passed in 2019 imposed new restrictions that make it harder to raise rents. The epidemic hit in 2020, accompanied by strict eviction bans that prevent landlords from evicting tenants for non-payment.
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The New York City skyline as seen from Midtown Manhattan. (Bloomberg)
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IA&E told Bloomberg that these factors have contributed to operating costs jumping 78% over the past decade, outstripping rent growth over the same period. IA&E said it is owed $84 million in unpaid rent.
City leadership is also looking at A&E. In January, the company settled with the city for $2.1 million to address tenant harassment and hazardous conditions at 14 buildings in Brooklyn, Manhattan and Queens.
IA&E said it has invested more than $800 million in capital improvements at its facilities, according to Bloomberg.
FOX Business has reached out to A&E for further comment.
