The police close off several blocks around the East 158th Street and Melrose Avenue apartment during the tense standoff, which around 1 p.m.
The 58-year-old man had invited the women to his apartment with the intent to take them hostage, police said.
At one point, he told police he had a grenade.
Police said he had several knives, but no grenade.
"He was definitely threatening the lives of these women but we convinced him it was not in his interest to injure them," said NYPD spokesman Paul Brown.
They managed to talk him into releasing one of the women just before 6:00 p.m.
The man and the other woman came out without incident around 6:15 p.m.
No one was hurt in the standoff. Police said charges were pending against Smith.
Investigators said he was distraught over being evicted.
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