Manhattan Office Buildings Converted into Residential Units Continue to Rise
Continuing the post-pandemic trend, yet more Manhattan office buildings have been marked for conversion into residential units.
Latest Conversion: 77 Water St.
The newest address to join the pool is 77 Water St., a 26-story Financial District tower that Big Apple-based real estate firm Vanbarton reportedly plans to turn into some 600 rental apartments, people familiar with the matter told Crain’s.
Vanbarton is reportedly under contract to pay approximately $95 million for the 1970s-built tower in a deal that is anticipated to close before the year is out.
Amenities and Current Office Tenants
Over the years, commercial tenants at the building have included AT&T, Goldman Sachs and the law firm Lewis Brisbois Bisbois & Smith.
The Water Street property currently has approximately 546,000 square feet of usable office space, as well as amenities including an open plaza area dotted with locust trees, a Wild West-style candy store within the building and, on the roof, a steel replica of a World War I fighter plane.
Why Convert Office Spaces?
Transforming empty or under-used office spaces has become an increasingly popular tactic as employees continue to significantly do their jobs remotely and the affordable housing crisis creates high demand for residential.
Well over 60 New York City office buildings are currently in the process of attempting to quickly convert into homes, with some more viable for such remodeling than others.
Challenges and Success Stories
“If your building is wide open and empty, there is a clear path,” Gerard Nocera of Resolution Real Estate commented on the matter. “But if you have tenants with long-term leases, to rework your core with existing tenants is an impossibility.”
One particularly notable such conversion case is that of the celebrated Flatiron Building, an iconic office tower for which residential plans were filed last month.
Conclusion
The trend of converting Manhattan office buildings into residential units is expected to continue, driven by the pandemic’s impact on the workplace and the city’s housing crisis. As the city’s real estate landscape continues to evolve, it will be interesting to see how these conversions shape the urban landscape and meet the demand for affordable housing.
FAQs
Q: Why are office buildings being converted into residential units?
A: The pandemic has changed the way people work, leading to a decrease in office space demand. Additionally, the affordable housing crisis has created a high demand for residential units.
Q: How many office buildings are being converted into residential units in NYC?
A: Well over 60 New York City office buildings are currently in the process of attempting to quickly convert into homes.
Q: What are some of the challenges of converting office buildings into residential units?
A: Buildings with long-term leases and tenants can be difficult to rework, making conversion more challenging in these cases.
