News Summary
New York City will transform 5 Times Square, the former Ernst & Young headquarters, into a residential complex with 1,250 units. This initiative aims to alleviate the city’s housing crisis, offering affordable options alongside retail space. The project, led by RXR Realty and others, follows vacant office trends and aligns with the mayor’s broader Manhattan Plan. Construction will boost the local economy and create hundreds of jobs, marking a significant shift in urban space utilization for a high-demand area.
New York City is set to undergo a significant transformation as the redevelopment of 5 Times Square begins, converting the former Ernst & Young headquarters into a residential complex that will create 1,250 new homes in Midtown Manhattan. This conversion represents a critical push towards alleviating the city’s ongoing housing crisis, particularly in one of its most high-demand areas.
The 38-story skyscraper, which covers approximately 1.1 million square feet, is designated for a conversion that will transform about 917,745 square feet into residential units. The project will yield a total of 1,250 rental units, consisting of 1,050 studio apartments and 200 one-bedroom apartments. Notably, 25% of these new housing units, or roughly 313 apartments, will be classified as permanently affordable for New Yorkers earning up to 80% of the area median income.
This initiative aligns with Mayor Eric Adams’ broader Manhattan Plan, which aims to create 100,000 new homes in Manhattan over the next decade. The decision to convert 5 Times Square comes as the office space has remained largely vacant since Ernst & Young vacated the premises in 2022, resulting in a substantial vacancy rate of approximately 80%.
The city sold the site for $8 million following the relaxation of housing density limits by state officials, making this conversion project viable. RXR Realty is leading the development in partnership with Apollo Global Management and SL Green Realty. The financing of the project includes $575 million from Corebridge Institutional Investments, which has bolstered the efforts to revamp the building.
Construction is anticipated to commence by the end of 2025, with an aim to complete the first phase by 2027. The redevelopment is expected to generate significant economic benefits, including the creation of around 1,400 construction jobs along with 830 permanent positions after the project’s completion.
The ground floor of 5 Times Square will retain about 37,311 square feet designated for retail space. Additionally, digital media giant Roku will continue to occupy 240,000 square feet within the building until 2033, ensuring continued commercial activity in the area during the transformation.
This conversion project has been made possible through the City of Yes initiative, which introduced more flexible zoning laws that facilitate conversions from office to residential uses. Recent policy changes have removed the previously existing 12 FAR residential cap and included new tax incentives, which have strengthened the feasibility of such projects.
Other major office-to-residential conversions underway in New York City include the former Pfizer headquarters and 25 Water Street, previously home to JPMorgan Chase. City officials are optimistic that the transformation of 5 Times Square will contribute significantly to addressing the chronic housing issue that has long plagued the city.
The architectural firm Gensler is involved in redesigning the building to accommodate its new residential function. This redevelopment endeavor is part of a larger vision to enhance the community aspect of Times Square, traditionally regarded as a bustling commercial hub. By making this high-traffic area more livable, the plan aims to redefine its purpose in the urban landscape.
In conclusion, the office-to-residential conversion at 5 Times Square marks an important shift in urban space utilization, addressing both the need for affordable housing and enhancing the overall livability of one of New York City’s most iconic areas.
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Additional Resources
- Crain’s New York
- Wikipedia: New York City
- Multi Housing News
- Google Search: 5 Times Square
- New York YIMBY
- Google Scholar: office to residential conversion
- The Architect’s Newspaper
- Encyclopedia Britannica: urban redevelopment
- The New York Times
- Google News: New York City housing crisis
- 6sqft
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