The conversion of 5 Times Square could net more than 1,000 units.
The latest vision for the building was discussed during a recent City Planning Commission meeting.
Apollo Global Management, RXR Realty and SL Green Realty are planning to convert the 38-story office building into up to 1,250 units of housing, mostly studios, of which 25 percent would be affordable. (Previously reported plans called for 942 housing units.)
It will likely be completed in two phases to accommodate Roku’s lease in the building, which does not expire until 2033. The company took 240,000 square feet in the building in 2022, but by the following year, it downsized and decided to sublease its new digs. That could mean the company will be willing to get out of its lease even earlier.
The project is expected to get 467m, a new property tax break provided to office-to-residential conversions where at least 25 percent of units are set aside as affordable. The incentive provides a 65 to 90 percent tax exemption between 25 and 35 years, depending on location and where the project is located. This project would be eligible for the 90 percent exemption for 35 years (if construction begins before June 2026).
The city owns the site, but Apollo, RXR and SL Green control the property through a long-term leasehold. In order to build residential on the site, a state general project plan from 1981 must be amended. The GPP allows the project to override local zoning rules, which is why the residential project can take up the building’s existing envelope (the building has a floor area ratio of 35).
The project is a somewhat extreme example of the expanding possibilities for office-to-residential conversions (in this case, given the local zoning override). And it joins a growing list of properties where owners have realized they can convert office space in a relatively short period of time (the presentation indicated that the existing layouts allowed for “efficient” conversion of office space).
What we’re thinking about: Know of any other planned office-to-residential conversions that haven’t been reported? Send a note to kathryn@realtacticspro.com.
A thing we’ve learned: A hearing will be held May 12 on the Real Estate Board of New York’s motion seeking to prevent the Fairness in Apartment Rental Expenses, or FARE, Act from going into effect in June while its lawsuit makes its way through the court.
Elsewhere in New York…
—More than three million for you, Zohran Mamdani! And none for you, Andrew Cuomo. So said the city’s Campaign Finance Board on Tuesday. Mamdani took in $3.8 million in public matching funds, while Cuomo lost out on $2.5 million in public funds, City & State reports.
— Meanwhile, a Siena Poll survey released Tuesday shows that Cuomo enjoys a double-digit lead over his opponents in the Democratic primary, Politico New York reports. The poll simulated the city’s ranked-choice voting system, finding that Cuomo won by the eighth round of voting, finishing with 54 percent, compared to Assembly member Mamdani’s 27 percent.
— State lawmakers have reached a tentative deal to reform New York criminal discovery laws, a policy that has held up budget talks, Gothamist reports. The deal, which would provide judges with more discretion when determining whether to dismiss cases based on a defendant’s access to evidence, could help pave the way for a final budget deal. Still, other key issues, including the state’s involuntary commitment laws, still need to be sorted out.
Closing Time
Residential: The priciest residential sale Tuesday was $6.3 million for a condo unit at 50 West 66th Street. The new construction condo in Lincoln Square is 2,400 square feet. The Corcoran Group’s Hilary Landis and Beth Benalloul have the listing.
Commercial: The most expensive commercial closing of the day was $7.9 million for 17 East 47th Street. The Midtown building known as the Mercantile Library is eight stories and 17,100 square feet.
New to the Market: The highest price for a residential property hitting the market was $17 million for a condo unit at 150 Charles Street. The West Village condo is 3,400 square feet and last sold on the market for $14.5 million in 2016. Compass’ Holly Parker has the listing.
Breaking Ground: The largest new building application filed was for a 283,148-square-foot, 12-story building at 220-28 Jamaica Avenue in Queens. Mark Ginsberg of Curtis + Ginsberg Architects is the applicant of record.
— Joseph Jungermann