News Summary
New York City is set to transform underutilized office space at 5 Times Square into 1,250 residential apartments as part of a new initiative announced by city officials. The project aims to address the housing crisis by converting a significant portion of vacant space into affordable living options. This careful conversion is facilitated by changes in state laws, promoting a varied housing solution within a vibrant mixed-use development that also retains retail space, ensuring the character of Times Square remains intact.
New York – The city of New York is set to undergo a significant transformation as Governor Kathy Hochul and Mayor Eric Adams announced a major office-to-housing conversion project at 5 Times Square. This initiative aims to convert underutilized office space into a vibrant mixed-use development, resulting in the creation of up to 1,250 new residential apartments.
The ambitious endeavor is made possible by the recent amendment of 60-year-old state laws that previously limited residential development in the city. The removal of the 12 Floor Area Ratio (FAR) cap enables this project to maximize available space. Of the 1,250 apartments, 313 are designated as permanently affordable for New Yorkers earning up to 80% of the Area Median Income (AMI), addressing the ongoing housing crisis in the city.
Located on 7th Avenue between 41st and 42nd Streets, the 38-story building is nearly 1 million square feet of office space, most of which is currently vacant, with only nine stories leased. The 5 Times Square structure was previously home to the headquarters of Ernst & Young until their departure in 2022, which left the building approximately 80% empty.
Details of the Project
The conversion plan includes a diverse array of housing options, with the development projected to feature 1,050 studio apartments and 200 one-bedroom apartments. All future residents will have equal access to amenities within the building. The project also seeks to preserve over 37,000 square feet of existing retail space, maintaining the character and vibrancy of the bustling Times Square area.
In addition to the housing benefits, the initiative is anticipated to foster economic growth. It is estimated that the construction phase will generate around 1,400 jobs, while approximately 830 permanent direct and indirect jobs are expected to be created once the project is completed.
The office-to-housing conversion requires approval from the Empire State Development (ESD) Board of Directors, which has already voted to amend the state’s 42nd Street Development Project General Project Plan to allow for residential usage at the site. This pivotal decision marks one of the largest shifts in the city’s residential development strategy in recent years.
Community Impact
Mayor Adams emphasized the need for creating new housing in every neighborhood as a crucial step in combating the housing crisis affecting many residents. This project aligns with the city’s ongoing efforts to revitalize its central business districts and create mixed-income communities, enabling a more comprehensive approach to housing solutions in New York.
The building is designed by Kohn Pedersen Fox and aims to blend seamlessly with the surrounding area, ensuring that street-level retail and marketing signage are retained to preserve the iconic Times Square experience for both residents and visitors.
Construction is expected to commence by the end of the year, with the first phase projected for completion by 2027. Given the city’s increasing need for affordable housing and the adaptation of office spaces in response to changing work patterns, this conversion project stands as a critical development in the ongoing real estate landscape in New York City.
Rent and Affordability
While many of the new apartments will be categorized as affordable, the average monthly rent for the studio apartments is projected to be around $2,174. This price point, while reflecting the demand for housing in Manhattan, highlights the ongoing challenges that many New Yorkers face in finding affordable living options.
The conversion of 5 Times Square to residential use is set to contribute significantly to a growing trend in New York City that sees older office spaces being reimagined as residential properties, following similar projects such as 25 Water Street, 55 Broad Street, and the former Pfizer headquarters. This movement not only addresses the housing needs but also reinvigorates the urban landscape of one of the world’s most famous cities.
Deeper Dive: News & Info About This Topic
- The New York Times: 5 Times Square Conversion
- Wikipedia: New York City
- 6sqft: Times Square Office Tower Conversion
- Google Search: 5 Times Square Conversion
- Patch: State Approves 5 Times Square Conversion
- Google Scholar: New York City Housing Crisis
- Commercial Observer: 5 Times Square Housing Conversion
- Encyclopedia Britannica: New York City Housing
- Law360: State Greenlights NYC Residential Conversion
- Google News: 5 Times Square Conversion
