Google co-founder Sergey Brin has reportedly divested his stake in a New York City real estate fund, selling his shares for a fraction of their value amid concerns over rent control policies and escalating operational expenses. Amphitheatre LLC, an investment firm associated with Brin, sold its shares back to the fund manager, A&E Real Estate, late last year.
A&E Real Estate confirmed the buyback of a long-term investor, stating that the seller accepted "six cents on the dollar on their original equity investment to divest itself from the New York City multifamily sector." While Brin's specific investment amount with A&E remains undisclosed, the gross value of his stake in the properties was approximately $79 million, according to records.
This move comes after New York City Mayor Zohran Mamdani's election victory, which was secured on promises of a rent freeze. The city's Rent Guidelines Board voted in favor of freezing rent increases for approximately 1 million rent-stabilized apartments. Landlords argue that this decision, combined with the restrictive 2019 rent laws and increased costs for borrowing and insurance, makes it difficult to cover necessary repairs and improvements.
"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," a spokesperson for A&E Real Estate told The Post. The company also stated that its operating expenses have risen 78.5% over the past decade, outpacing rent increases, and that it carries $84 million in unpaid rent arrears. A&E has stated it invested over $800 million across its portfolio to address building violations and upgrades.
Critics of the rent freeze suggest it could lead to increased prices for market-rate tenants, property neglect, and landlords selling off buildings. The New York City Department of Housing Preservation & Development has previously sued A&E over alleged unsafe living conditions in its units, including mold and lead paint. In January, the city reached a $2.1 million settlement with A&E to address hazardous conditions and alleged tenant harassment across 14 buildings.
This is not the first time Brin has sought to distance himself from policies in progressive-leaning states. He previously relocated numerous LLCs out of California to avoid a potential wealth tax, a proposal he has actively campaigned against.