In the Garment District, where fabric-filled storefronts remain common, Manocherian Brothers are assessing the impact of the City Council’s recent zoning changes. The landlord has proposed rezoning 257 West 39th Street for a partial residential conversion, potentially adding apartments above existing fabric shops. The lower floors continue to house several long-standing textile businesses, while parts of the upper floors appear underused, reflecting the neighborhood’s ongoing balance between supporting the garment trade and expanding housing near Penn Station and the Port Authority.
According to The Real Deal, Manocherian Brothers filed a preliminary project description with the Department of City Planning in December that describes a “partial conversion” to residential use. For now, it is only a summary filing; no full application has been submitted, and a company representative declined to comment. The Real Deal also notes that the ground floor is occupied by tenants such as AK Fabrics, It’s a Material World, Beckenstein Fabrics and Fabric House, while some of the upper floors are either vacant or only lightly occupied. The preliminary move suggests the owner wants the option to pursue housing even inside the area the Council tried to shield for fabric and wholesale businesses.
Public property listings back up the picture of an aging commercial building with room to maneuver. StreetEasy describes 257 West 39th Street as a 16-story commercial O6 property from the 1920s. Market listings for nearby leases and lots show the block has long been pitched for manufacturing and showroom space, which helps explain why both owners and tenants can plausibly see either preservation or conversion in its future.
Rezoning, the carveout and the math
The broader Midtown South Mixed-Use plan approved by the City Council is set to allow roughly 9,500 new homes across 42 blocks and secure nearly $488 million in neighborhood investments, according to the City Council. But there was a late twist: in response to concerns about losing garment businesses, the Council carved out a set of Garment District properties and stripped them of residential rights.
That last-minute change removed residential use from 37 buildings, a move framed as a way to protect local manufacturing. Critics say it also wiped out significant opportunities for office-to-residential conversions, as reported by Commercial Observer. Manocherian’s early filing effectively tests the edges of that compromise.
Garment District leaders push back
Property owners and the Garment District Alliance have argued that the carveout caught many landlords off guard and may have sidelined much-needed housing. A survey of the 37 excluded parcels found nearly 30 percent vacancy among those addresses, the Alliance told The Real Deal. To them, that suggests underused space that could help tackle the city’s housing crunch.
Barbara Blair, president of the Garment District Alliance, told The Real Deal that the carveout should be revisited, arguing the area’s closeness to major transit hubs like Penn Station and the Port Authority makes it too important to freeze in place. She called it “critically important that this is a high functioning neighborhood because it’s a port of entry.” In other words, this is not just any industrial pocket; it is many visitors’ first real look at New York.
What comes next
If Manocherian Brothers move ahead with a full application, the proposal would formally enter the city’s land use maze. The Department of City Planning would certify it into the Uniform Land Use Review Procedure, or ULURP, triggering a public review that runs through the local community board, the borough president, the City Planning Commission and, in the final stage, the City Council.
The neighborhood’s political landscape is currently shifting. Councilmember Erik Bottcher recently won a February special election to the state Senate, leaving his City Council seat temporarily vacant, according to amNY. This vacancy could influence decisions on any rezoning proposals near 257 West 39th Street, depending on who fills the seat and the timing of their appointment.
At the same time, the city is debating whether individual Council members should hold as much sway over projects in their districts as they do today. Broader changes to the long-standing practice of member deference are sketched out in recommendations from the Charter Revision Commission. Those proposed reforms, if approved by voters, would shift some appeals away from a single local member and could alter how contentious conversions are decided, according to the Charter Revision Commission.
For now, 257 West 39th Street remains a longstanding commercial building, with fabric shops on the ground floor and underused upper floors. Whether it becomes a test case for the city’s new zoning rules or remains another potential development in the Garment District will depend on whether Manocherian Brothers move forward with a formal rezoning application.
