Months before New York City approved a historic two-year rent freeze, Google co-founder Sergey Brin quietly exited a struggling real estate fund at a steep loss.
In December, Brin sold his stake back to A&E Real Estate, the fund’s manager, for six cents on the dollar, according to documents obtained by Bloomberg.
The fund holds 5,900 rent-stabilized apartments, with Brin’s stake being valued at roughly $79 million, a drop in the bucket when viewed next to his $280 billion net worth.
“A&E bought out one of our long-term investors, who was willing to accept six cents on the dollar on their original equity investment to divest itself from the New York City multifamily sector,” a company representative told Bloomberg in a statement.
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“The simple and deeply troubling fact for renters is that institutional capital – both equity investors and lenders – are fleeing New York City’s rent-stabilized apartment sector,” the A&E representative continued, according to Bloomberg. “They understand New York is in a doom loop.”
It is not clear how much Brin, 52, initially invested, what percentage of the fund he owned or how much A&E paid to recapture the billionaire’s stake.
Brin’s exodus from the New York City rental market came a month after Zohran Mamdani was elected mayor on a platform of freezing the rent for 1 million rent-stabilized units for the duration of his term.
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Mamdani followed through on that promise last week, when the Rent Guidelines Board voted to cap rent increases at 0% for stabilized leases signed or renewed between October 1, 2026, and September 30, 2027. Mamdani appointed six of the nine current members to the board.
A&E Real Estate, one of the largest multifamily landlords in New York City, has been struggling financially long before the latest rent freeze.
State legislation passed in 2019 imposed new restrictions that made it harder to raise rents. The pandemic hit in 2020, bringing with it a strict eviction ban that prevented landlords from removing tenants for non-payment.
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A&E told Bloomberg that these factors contributed to operating costs jumping 78% in the last decade, which surpasses rent growth over the same period. A&E said it is owed $84 million in unpaid rent.
City leadership has also had their eye on A&E. In January, the firm settled with the city for $2.1 million to address tenant harassment and hazardous conditions in 14 buildings across Brooklyn, Manhattan and Queens.
A&E said that it has invested more than $800 million to make capital improvements in its buildings, according to Bloomberg.
FOX Business reached out to A&E for further comment.
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