Brooklyn, December 6, 2025
CIM Group will convert a Dumbo office complex into residential apartments, creating multifamily rental units and an 11-story condominium. Expected to complete by 2027, this project reflects a rising trend in NYC’s real estate market for office-to-residential conversions. It aims to foster affordable housing while enhancing local amenities, like fitness centers and tenant lounges, supported by NYC’s tax incentives. This ambitious transformation promises to maintain Dumbo’s unique character and meet community housing needs.
Brooklyn’s Dumbo Neighborhood Transforms: Office Complex to Residential
A Landmark Conversion Project Set to Reshape Local Housing
Brooklyn, New York
CIM Group has announced plans to convert a Dumbo office complex into residential apartments, marking a significant shift in the neighborhood’s real estate landscape. This project is indicative of the broader trend of office-to-residential conversions across New York City as demand for housing continues to surge.
The transformation will involve changing an existing office building into multifamily rental units, complemented by a new 11-story condominium addition. This ambitious development will also feature community amenities such as tenant lounges and a fitness center. With an expected completion date set for 2027, the project represents a forward-looking investment in one of Brooklyn’s most popular neighborhoods.
Utilizing Tax Incentives for Affordable Housing
The apartment portion of the development will benefit from New York City’s new 467m program, which provides a tax abatement for 35 years in exchange for setting aside 25 percent of the units as affordable housing. This program encourages developers to create inclusive communities while still making a sound financial investment. The tax abatement structure offers a significant 65 percent exemption for the first 30 years, decreasing by 10 percent annually starting in year 31.
A Growing Trend in NYC’s Real Estate Market
The Dumbo project aligns with a nationwide trend of repurposing office spaces due to changing work habits and rising housing demand. For instance, in May 2025, the Empire State Development Corporation approved plans to convert 5 Times Square into approximately 1,250 apartments. Similarly, 25 Water Street began redevelopment into residential units in 2023, aiming to create over 1,300 apartments, making it the largest office-to-residential conversion project in the United States.
Impact on the Dumbo Neighborhood
The Dumbo neighborhood, recognized for its historic architecture and vibrant arts scene, has experienced significant development over recent years. The conversion of office spaces into residential units is expected to enhance the area’s appeal, adding more housing options while preserving its unique character. As the local economy continues to fluctuate, this project exemplifies how private investment can revitalize neighborhoods and meet pressing community needs.
Key Features of the Dumbo Office Complex Conversion
| Feature | Description |
|---|---|
| Project Scope | Conversion of an existing office building into multifamily rental units, with a new 11-story condominium addition. |
| Amenities | Tenant lounges and a fitness center. |
| Completion Date | 2027. |
| Tax Incentives | Utilization of New York City’s 467m program, offering a 35-year tax abatement in exchange for 25% affordable housing units. |
Conclusion
The conversion of the Dumbo office complex into residential apartments is not just a reflection of changing urban dynamics but also a testament to the resilience and innovation of the real estate sector in New York City. By embracing office-to-residential transformations, developers foster a thriving community that balances housing needs with economic growth. As we look to the future, supporting local businesses and staying engaged in initiatives like this will continue to drive New York’s economy forward.
FAQ
The 467m program is a New York City initiative that offers tax abatements for 35 years in exchange for setting aside 25 percent of the units in a development as affordable housing. The abatement provides a 65 percent exemption for the first 30 years before dropping 10 percent annually, beginning in the 31st year.
In May 2025, the Empire State Development Corporation approved plans to convert 5 Times Square into 1,250 apartments. Additionally, in 2023, 25 Water Street began a process of redevelopment into a residential building, aiming to create over 1,300 apartments, making it the largest such conversion in the United States.
The conversion is expected to enhance Dumbo’s appeal by providing more housing options while preserving its historic architecture and vibrant arts scene, contributing to the area’s continued growth and development.
Now Happening on X
- @CrainsNewYork (December 5, 2025): CIM Group seeks to convert Panorama complex into mixed-use residential development. View on X
- @NYBizJournal (December 5, 2025): CIM Group is proposing to transform a historic Brooklyn office complex into hundreds of residential units. View on X
- @NYBizJournal (December 6, 2025): CIM Group is proposing to transform a historic Brooklyn office complex into hundreds of residential units. View on X
- @SDCRE (December 1, 2025): Office-to-Residential Conversions Are Booming and New York Is the Epicenter; over the past two decades, developers in New York have converted nearly 30 million square feet of office space into residential living, with the pace picking up recently. View on X
- @BlairKamin (December 1, 2025): Developers have converted nearly 30 million square feet of New York office space into residential living—take a tour—WSJ. View on X
- @JulieChangRE (December 5, 2025): Working on curating content for a macro + RE newsletter and reading a Bloomberg article on more NYC conversions, including a few completed projects. View on X
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