Office conversions in the apartment are blooming in NYC and that’s why

From Spreadsheets to betting sheets – this is the biggest news in the Big Apple Real Estate.

New state and city measures are encouraging property owners to return outdated office buildings to modern apartments. The next eight years are likely to see nearly 19,000 residential units created by the previous office space – top 5,500 already converted since 2010.

It is an impressive total in an era when placing a single new building with 300 apartments can last five or more years to plan, financially and build – not including the time it takes to buy land and breakdown old purchases.

“It is now easy to convert buildings throughout New York City,” said planning commissioner Dan Garodnick, who pushed for changes and calls the conversions a “a win, helping us through pandemic -related breaks and Setting the trade space of under -use to be used better. “

The phenomenon gained withdrawal from two government actions. A state program gives tax reductions in exchange for making 25% of rental apartments created by “affordable” converts-not more than a third of the average neighborhood income.

Meanwhile, the measures “City of PO” by Mayor Eric Adams, passed last month, made buildings that were recently opened in the 1991 conversion acceptable, compared to previous interruptions in 1961or 1977, depending on the location.

The masses also opened the entire large apple until conversions, which were previously only allowed in parts of faith, West Midtown and some high -length areas like Long Island City.

Most of the previous conversions were in the Wall Street area, which many companies left in the 1990s.

Most importantly, 70 Pine Street, a landscape of reference point, 1932, darkened after AIG moved in 2009. After some false beginnings by real estate firms prevented from the cost and complexity of the conversion, it was reconfigured by Rose Associates and DTH Capital. and 2016. Work of $ 600 million gave more than 600 luxury rented units, which were quickly abducted.

The late chef James Kent, who lived in one of them, created Crown on the first floor and eventually the saga-clip and luxury lounge on the upper floors of the art deco of the tower.

However, the conversion of a building is not a picnic. Among the challenges, construction and fire codes are different for residents than they are for office buildings. Many large office floors do not have enough windows as required by law for apartments, so builders need to redesign facades or empty parts of structures to create interior yards. Central air conditioning should be replaced with individually controlled units. Office baths are not suitable for use of residential.

Even so, conversions are an attractive opportunity for owners. While buildings that are no longer attractive to office tenants can end up in foreclosure, for almost any residential conversion to a market star for more housing, attracting families who love new homes.

And it is financially useful to the owners. Nathan Berman, whose company Metro Loft is a partner in five conversion projects, said a typical conversion will cost only “about one -third of what would cost to build from the land above.”

Or less: Build a new tower of the same size and quality as 5 times Square can be a job of nearly $ 500 million based on recent completed projects in Manhattan, which has the highest development costs in the world . By comparison, the conversion is budget with a punishable $ 95 million.

Here are a semi-dimension large transformations or in development or to settle soon.

5 times square

Cue the bright lights! No country illustrates better how times are changing than this 38-storey tower in Broadway and West 42nd Street. When it opened in 2002, it was one of the quartets of the new office buildings that announced a “new” Times Square and made the “world intersection” suitable for companies such as the original Ernst & Young tenant. But Ey moved to Hudson Yards in 2022, leaving a void. Other companies shed in the area exceeded by tourists and the threat of Elmos and Pedicabs. RXR Realty, SL Green and Apollo Global Management recently presented planes with the department of buildings to transform its mostly empty flowers into 942 apartments. The $ 95 million plan will still include a commercial space, and the time frame is not clear.

219 E. 42nd and 235 E 42nd St.

It is expected to be completed in 2027, this complex in the wonderful corner of Avenue Avenue, a block from the large central terminal, has set to be the largest conversion to the city so far. The interior demolition is being developed for a 1,600 units of apartment complex that will combine two buildings that were once the home of Pfizer-Pharmaceutical giant displaced from both buildings to the coil in the Hudson court. Owners Metroloft and David Werner real estate investments are adding 19 stories to the top of 10 original stories to 219, with steel to begin rising in the spring. The finished project will boast of 100,000 square meters of tenants’ facilities, including a roof pool and what Metro Loft Mitchell Wasser’s main marketing official called “great fitness” facilities.

111 Wall St.

The victory of the 1960s, the 25-storey tower in the corner of the walls of the wall and water was the poster of the Pandemic Office Crisis. The former Citigroup owner moved in 2019 and then sold it to Nightingale Property and Interest Capital Partners. They spent nearly half a billion dollars to modernize it and make it with a new bronze facade. But Covid-19 convicted hopes to attract new office tenants. Now, Nightingale’s head is under siege by federations for claimed fraud. Interest has joined the management of Metro Loft by Nathan Berman to turn empty hulk into 1,600 rental apartments, many overlooking the river and the port. Metro Loft’s Wasser said there will be 75,000 square meters of tenant blessings, including a roof pool, runway and underground basketball fields. “Now it is in the design and planning stages,” he said, and work will start within a few months. The windows should be redesigned for living use, noted Waszer, but the “overall appearance” will not change.

Flat building

The conversion will give 38 luxury residents of Condo by 2026. The iconic, 22-storey purchase overlooking Madison Square Park opened in 1902 and endured many ownership changes over the decades, while its beauty was very often hidden Behind him he fell blank after the Macmillan book publisher moved in 2019, then hit the end in 2023 when the senior bidder in a court -led auction failed to put the money. But Jeffrey Gural and partners Brodsky organizations and Italy’s sorgent group boarded a $ 161.5 million purchase. They will not change the exterior very loving, except for a small reduction in retail space. Residents will enjoy the sight of the north, west and east.

The third 750 ave.

The 34-storey tower between the 46th 46th and East roads was one of the international-style towers that gripped in the 1950s when the third road from the third road was destroyed. After the home of the financial tenants, she lost her juice after the Fairchild’s publications and the Eisneramper accounting firm moved several years, leaving 80% of its 800,000 square meters of free. Owner SL Green plans to turn it into 639 apartments for rent. They are tearing thirteen floors on the side of Avenue Avenue to make room for a “winter garden” created by the Gensler architectural firm and adding eleven flowers to the west side of the building. The finished product, which will cost $ 805 million and take three years to complete, will include a health club and a half hectare of outdoor space. “They are full speed forward with the design and expect to start the breakdown work in the middle of the year,” a SL Green representative told the post.

25 Water St.

Formerly known as the 4 New York Plaza, the office structure was hated for its brutal and weak exterior windows designed to help keep the 1960s computers fresh. Its gloomy interior terrified employees on JP Morgan Chase, Daily News and Media American, one of which called it a “Windowless Helhole without joy”. The new owners are adding ten floors to the top of the original 22 and create a “window wall” facade designed by Cetraruddy architects. Tenants in 1.320 apartments will enjoy 100,000 square meters of recreational facilities, including interior and exterior pools, a large fitness center, a basement bath and sports simulators. The first units will end in February with the rest to follow over the next twelve months.