A significant supporter of Adams missed a key city lease opportunity, followed by intervention from a senior official.
Jesse Hamilton, a strong supporter of the mayor responsible for managing the city's real estate services, is facing scrutiny from Manhattan prosecutors.
A notable real estate firm initially secured the bidding contract this spring to move the city’s Department for the Aging to a more suitable facility. However, before finalizing the deal, Jesse Hamilton intervened to redirect the prospective lease to 14 Wall St., a neoclassical office building in Manhattan owned by billionaire Alexander Rovt, the insiders informed PMG. They wished to remain anonymous to discuss the sensitive matter regarding Hamilton, who is a personal friend of the mayor.
Hamilton instructed his staff to cease communications with the original winning bidder, AmTrust Realty Corp., as indicated by an email obtained by PMG. He directed his colleagues at the Department of Citywide Administrative Services, where Adams appointed him as the $213,783-a-year deputy commissioner for real estate services.
“Please pause negotiations with 250 Broadway,” Hamilton wrote on May 10, referring to a Lower Manhattan property owned by AmTrust that is leased to city and state agencies. “I have spoken with the DFTA commissioner, and her desire is to relocate to 14 Wall Street.”
He further instructed staff to maintain silence, stating, “no one is to have any further communication with 250 Broadway, and if any promises or agreements were made with regard to that property, please let me know before next weeks’ meeting.”
PMG has verified another message that acknowledges AmTrust had outperformed other bidders, including for 14 Wall St., in securing a contract valued at tens of millions of dollars.
Hamilton is among several aides of Adams currently under investigation. Upon returning from a recent trip to Japan with other city personnel, agents from the Manhattan District Attorney’s office met them at JFK Airport and confiscated several phones, including Hamilton's. The DA’s office is reportedly focusing on the city's leasing practices for commercial properties; however, it has not indicated whether the 14 Wall St. lease is part of that inquiry. A spokesperson from the DA's office declined to comment.
Hamilton did not respond to multiple requests for comment regarding this matter.
In a separate development, Mayor Adams, who has pleaded not guilty to federal corruption charges, defended Hamilton.
“I know Jesse as an attorney and as a former state senator, and as a community advocate that helped people with housing issues for years,” Adams stated at a press briefing on Oct. 15, following the phone seizures. “Jesse brought a lot to city and state government, and we were proud to have him.”
A spokesperson for DCAS refrained from providing detailed answers concerning Hamilton’s decision, referencing an inquiry from city lawmakers.
“We are in receipt of a letter from the City Council on this matter, and our agency will respond in the typical manner,” spokesperson Anessa Hodgson indicated in a statement.
Council Member Lincoln Restler, who leads the Committee on Governmental Operations, co-authored the letter to DCAS mentioned by Hodgson. He plans to hold a hearing on the agency's leasing practices next week.
"The allegation that Jesse Hamilton unilaterally and improperly steered a lucrative city lease to a donor of the mayor is extremely disturbing," Restler remarked in a statement. "New Yorkers deserve an administration free of corruption and I hope there will be a swift investigation by appropriate authorities that leads to real accountability."
A spokesperson for City Hall did not respond to a request for comment.
Typically, city procurement regulations prevent employees from interfering with or modifying the results of a formal request for proposals (RFP) process. It's unclear whether these rules were applicable in this case, and neither DCAS nor City Hall provided clarification.
Gregory Rose, a spokesperson for DFTA, declined to address Hamilton’s claim that the Aging commissioner requested space at 14 Wall St., deferring questions about the lease to DCAS.
“At 14 Wall St., the agency will occupy fewer floors, with floor plans that are more conducive to collaboration and related work units in nearby spaces,” he commented. “This improves the needs of the agency and the public we serve.”
A spokesperson for AmTrust declined to comment and would not allow an executive to be interviewed.
Hamilton has long been part of Adams’ close political circle. After Adams transitioned from the state Senate to run for Brooklyn borough president in 2014, he selected Hamilton as his successor for the Senate seat. Hamilton won that election but lost his position four years later due to his ties with state Republicans. When Adams assumed the mayoralty, he appointed Hamilton as a DCAS attorney and later promoted him to his current role in 2022.
Hamilton traveled to Japan alongside Ingrid Lewis-Martin, Adams’ top adviser in City Hall, whose phone was also seized. Other administration members were present on the trip, which Adams described as a self-funded vacation, as was a private-sector broker who collaborates with Hamilton on city lease deals. Agents also confiscated the phone of that broker, Diana Boutross.
Hamilton’s role in the lease benefits Rovt, a billionaire real estate investor and healthcare entrepreneur who earned his wealth in the fertilizer business. Rovt has supported Adams for over a decade.
Both Rovt and his wife contributed the maximum allowable $3,850 to Adams’ campaigns in 2013 and 2017. Rovt also donated between $5,000 and $20,000 to a nonprofit run by Adams during his tenure as Brooklyn borough president, based on records obtained through a Freedom of Information Law request.
While Rovt did not participate in the 2021 mayoral race, he and his son Max have contributed a total of $3,500 to Adams’ 2025 reelection campaign, according to records.
As Adams accumulated legal costs from federal inquiries into his connections with Turkish officials and businesses, Rovt and two family members contributed $15,000 to the mayor's legal defense trust in December.
When reached for comment, Rovt declined to address questions about 14 Wall St. and did not respond to further messages.
Even prior to Adams' mayoralty, the city had sought a new location for the Department for the Aging. Since the 1980s, the small agency has been housed in a century-old building near City Hall, with its hundreds of employees scattered across seven disconnected floors.
In a “statement of needs” released in December 2022, the department noted, “the current space does not adequately provide welcoming, accessible design for older adult visitors or [department] staff.”
Given the high cost of renovations, the department proposed relocating instead — a process requiring collaboration with the DCAS under Hamilton's leadership. This division manages 22 million square feet of leases with private landlords.
Typically, DCAS works with commercial brokers, including Boutross, to negotiate deals for city agencies. However, in this instance, it chose to solicit bids for the project, the insiders disclosed to PMG.
After Hamilton dismissed the initial RFP results, the agreement with Rovt began its journey through the public review process last month.
On September 24, a Manhattan community board endorsed the lease, advancing it for further approval by the City Planning Commission.
However, after a report by THE CITY highlighted Rovt's ownership of the building, his ties to the mayor, and Hamilton's oversight of lease deals, the board raised concerns in a letter to the planning commission.
“Media reports indicate that [Hamilton] is involved in an ongoing law enforcement investigation regarding potential conflicts of interest related to DCAS lease agreements,” board Chair Tammy Meltzer wrote in the Oct. 15 letter, which PMG reviewed. “While CB1 did not oppose the need for [the aging department] to relocate, we are deeply troubled by these reports suggesting that decisions might not have been made in the best interest of the City and instead could have been influenced by individual personal gain.”
Meltzer urged the planning commission to conduct a more thorough review of the lease prior to granting approval.
A spokesperson for the planning commission informed PMG that the body analyzes a limited set of criteria and does not examine the specifics of city lease agreements. After holding a public hearing last month, the commission approved the DFTA lease on Oct. 16, just a day after receiving the community board’s letter.
“When reviewing proposed acquisitions like this one, the City Planning Commission’s responsibility is to evaluate the appropriateness of the building and neighborhood for a city office,” spokesperson Casey Berkovitz said in a statement. “In this case, the CPC did so, concluded that the space was appropriate, and approved it on that basis.”
The last phase of the approval process could be more challenging.
The City Council can call the lease for review and, with a two-thirds vote, may reject it.
Mark B Thomas for TROIB News