The iconic office tower at 5 Times Square in Manhattan is officially making the shift from commercial to residential use, as revealed by the latest filings with the city. The project comes as part of a wider trend of office-to-residential conversions taking place across the New York City real estate landscape. Spearheading the development are RXR along with Apollo Global Management and SL Green Realty, which have been reported to plan on investing $95.1 million into the project, according to BizJournals.
The conversion aims to not only provide 942 housing units but also to retain a significant amount of commercial space, totaling an estimated 248,000 square feet. Market analysts anticipate that the addition of these residential options will be warmly received, especially considering Midtown's burgeoning popularity as a locale for new and diverse lifestyle amenities. Indeed, in a statement obtained by Crain's New York, McKenzie Ryan from Douglas Elliman expressed optimism, saying, "This will be a great litmus test for other residential buildings to either be converted or built."
The major transformation of the 39-story structure will include not only the residential conversion but also office space to remain operable. On the commercial side, the current tenants, such as Red Lobster and Chinese retailer Miniso, will continue to dominate the lower floors. Above them, floors six through 29 which were once office space, are now transitioning to residential use. These details emerge from recent plans filed with the city, an action that further solidifies the developers' commitment to the project.
This development follows the acquisition of a stake in 5 Times Square by Apollo Global Management and SL Green Realty from RXR for $360 million, as reported by New York City property records. The team has enlisted Gensler Architecture, a firm already engaged in a similar residential conversion at 111 Wall St., to bring this project to fruition. Nationwide, office conversions are expected to markedly increase, with an anticipated 103 office-to-residential conversions set to be completed by the end of 2024, a transformation trend that is rapidly redefining urban living spaces. RXR has chosen not to publicly comment on the filing.
