"Until 2022, 25 Water Street was home to the bank's back offices and, until 2020, housed the New York Daily News newsroom. Now, about half of its 1,320 rental apartments have been leased. The 32-story tower, which sits on the border of the financial district and the South Street Seaport, is the largest completed office-to-residential conversion project in the country."
"A combination of the pandemic-induced shift to remote work and a worsening housing shortage has pushed some developers to lean into a decades-old effort to repurpose languishing commercial space into new homes. New York City is leading the country in the financially and architecturally complex endeavor, boosted by government tax incentives. This year, 8,310 units are set to come online in converted buildings."
"Without the tax incentive, all of the building's apartments would have been market-rate, said Brian Steinwurtzel, co-CEO of GFP Real Estate, which bought and developed the building with Metro Loft Management and Rockwood Capital. Steinwurtzel said the program, called 467-m, which GFP advocated for and the New York State legislature passed in 2024, "is actually well designed in its structure," but the city's affordable housing lottery is frustratingly slow."
25 Water Street in downtown Manhattan converted former JPMorgan Chase back offices and the New York Daily News newsroom into 1,320 rental apartments, about half leased. The 32-story tower is the largest completed office-to-residential conversion in the country and used a new 35-year tax abatement program, 467-m, to include below-market units. New York City is leading nationwide conversions, driven by pandemic-induced remote work and a worsening housing shortage; 8,310 converted units are set to come online this year. Developers say the incentive's structure is effective, but the city's affordable housing lottery is slow and competitive, receiving roughly 450 applications per available unit citywide.
#office-to-residential-conversion #tax-abatement-467-m #affordable-housing-lottery #new-york-city-housing
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]