Months before New York City After approving 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 owns 5,900 rent-stabilized apartments, with Brin’s stake valued at about $79 million, a drop in the bucket compared to his stake. A net worth of $280 billion.
“A&E bought out one of our long-term investors, who was willing to accept six cents on the dollar on his initial stock investment to divest from New York City’s multifamily sector,” a company representative told Bloomberg in a statement.
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Sergey Brin at the 11th Breakthrough Awards held at Barker Hanger on April 5, 2025 in Santa Monica, California. (Gilbert Flores/Variety via Getty Images)
“The simple and deeply troubling fact for tenants is that institutional capital – both equity investors and lenders – are fleeing the rent-stabilized apartment sector in New York,” the A&E representative continued, according to Bloomberg. “They understand that New York is in a doomsday loop.”
It’s unclear exactly how much Brin, 52, initially invested, what percentage of the fund he owned or how much A&E paid to recoup the billionaire’s stake.
Brin’s exodus from New York’s rental market came a month later Zohran Mamdani was elected mayor on a program to freeze the rents of one million rent-stabilized housing units for the duration of his mandate.
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New York City Mayor Zohran Mamdani speaks during a rally at union headquarters in Manhattan on June 25, 2026. (Spencer Platt/Getty Images)
Mamdani delivered on that promise last week, when the Rent Guidelines Board voted to cap rent increases at 0% for stabilized leases signed or renewed between Oct. 1, 2026, and Sept. 30, 2027. Mamdani appointed six of the board’s current nine members.
A&E Real Estate, one of New York City’s largest multifamily landlords, was struggling financially well before the last rent freeze.
State legislation passed in 2019 imposed new restrictions that made it more difficult to raise rents. The pandemic hit in 2020, leading to a strict eviction ban that prevented landlords from evicting tenants for nonpayment.
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New York skyline seen from Midtown Manhattan. (Bloomberg)
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A&E told Bloomberg that these factors have contributed to a 78% increase in operating costs over the past decade, outpacing rental growth over the same period. A&E said it was owed $84 million in unpaid rent.
City leaders also have an eye on A&E. In January, the company settled with the city for $2.1 million to combat tenant harassment and unsafe conditions in 14 buildings in Brooklyn, Manhattan and Queens.
A&E said it invested more than $800 million to make major improvements to its buildings, according to Bloomberg.
FOX Business has contacted A&E for further comment.