Scaffolding now wraps the century-old office building at 175 Pearl Street in DUMBO, where crews are tearing out the interior as Watermark Capital pushes ahead with a full office-to-residential overhaul. The plan is to stack an 11-story vertical addition on top of the existing structure, creating a 19-story tower with nearly 200 homes split between condominiums and rentals. Roughly one-quarter of those units will be set aside as affordable housing, a detail that plays directly into how the project is financed and how it will be taxed.
As detailed by New York YIMBY, design work by S. Weider Architect P.C. calls for floor-to-ceiling glass, rows of glass-lined balconies and a revamped sky bridge on the north side of the property. Recent site photos show the facade wrapped in netting while crews pull out the original windows and gut the interiors. The building sits on a through-block site framed by Pearl, Sands and High Streets, a short walk from the Brooklyn Bridge onramp.
Financing and project scope
Watermark locked in its construction financing last year, lining up a $125 million senior construction loan from Bravo Property Trust in partnership with Integritas Capital, according to Commercial Observer. That package followed a $50.6 million acquisition loan arranged by BridgeCity Capital in 2024. Under the current plan, the existing eight floors will be converted to rental apartments, while an 11-story condominium stack will rise above them, with a mix of shared and dedicated amenity spaces serving the two residential components.
Purchase and building background
Watermark bought the 1918-built property from Cannon Hill Capital Partners, with local reporting and public records putting the sale price at about $66.5 million, per the Brooklyn Eagle. City filings and marketing materials indicate the building holds roughly 185,000 to 204,000 square feet of existing space, along with air rights that allow for the planned vertical addition.
Policy that made the deal work
The project is one of the early beneficiaries of a newly enacted state incentive aimed at turning obsolete offices into housing. Under the 467-m program, qualifying conversions that meet affordability criteria can receive long-term property tax exemptions, giving developers more room on complex adaptive reuse deals, according to the New York State Senate. Watermark has pointed to that framework, along with its commitment to make about 25 percent of the units affordable, as a key part of the project’s financial puzzle.
Transit, timing and what’s next
The address checks the transit box, with the High Street A/C and York Street F stations nearby and the Brooklyn Bridge ramps just around the corner, a selling point highlighted by New York YIMBY. Timelines are a bit fuzzier. Commercial Observer previously pointed to a 2027 completion, while more recent YIMBY coverage suggests construction could stretch into late 2028. For now, exterior recladding and interior demolition are in full swing, and neighbors can expect a steady stream of permit filings, teaser marketing and design updates over the coming year.
Watermark has so far kept specifics close to the vest, offering only broad hints about the final unit count, condo pricing and amenity lineup. Early materials reference multiple tenant lounges and a fitness center, but the exact balance between condos and rentals has not been made public. Even with those details still under wraps, the transformation of 175 Pearl Street stands out in DUMBO as a high-profile example of how private investment, state incentives and developer ambition are combining to turn aging office floors into new homes.
