The shuttered Stewart Hotel across from Penn Station in Midtown Manhattan is on track to trade rolling suitcases for long-term tenants. Developers say the 31-story 1929 building, which closed around 2022, will be refitted into roughly 579 permanently affordable studios and one-bedrooms with on-site social services, all managed by a nonprofit operator. Slate Property Group will develop the project, and Breaking Ground will own and operate the building.
Deal and scale
Slate Property Group and Breaking Ground closed on a $255 million purchase of the former 611-room hotel late last year and plan to convert it into about 579 apartments, with total development costs projected near $500 million, according to Commercial Observer. The developers say the building's tall ceilings and existing windows should make this hotel-to-apartment conversion faster than starting from scratch on a new residential tower.
Funding and timeline
Renovation of the Stewart will be financed with a mix of public subsidies, tax credits, and private capital, including commitments from lenders and nonprofit investment funds, as outlined by New York YIMBY. Construction is expected to run roughly 24 months once work officially begins, and the team says interior work can move quickly because the hotel floorplates already come with windows and bathrooms in place.
Tenants and services
New residents will be selected through the city's Housing Connect lottery and referrals from supportive-housing providers. Rents are being targeted at about 30% of household income and will likely come in under $2,000 a month for many units, Business Insider reported. Breaking Ground also plans an on-site health and social-services hub staffed by a case manager, medical personnel, therapists, and benefits counselors, and has said revenue from event rentals in the building's ballroom will help cover the cost of those services.
Why this matters
City Hall's recent "Block by Block" housing plan leans hard on producing and preserving more affordable units in transit-rich neighborhoods, a framing that advocates say makes the Stewart a key test case for Midtown, according to the NYC mayor's office. Breaking Ground has a track record of turning hotels into supportive, long-term housing, and developers say the Stewart could serve as a template for converting other underused hospitality properties into affordable homes, according to Commercial Observer.
