A trio of prominent real estate firms in the city is forging ahead with plans to convert a Times Square office building into a residential property, records show, and brokers are optimistic that tenants will flock to the new digs.
Midtown-based Apollo Global Management, together with RXR and SL Green, filed plans with the Department of Buildings last week to build 942 apartments at 5 Times Square — an existing 38-story office tower that was formerly the headquarters of Ernst & Young.
While some developers may still be wary of office-to-residential conversions, two brokers who spoke with Crain’s Thursday said they see this project as a lodestar for these kinds of developments, especially given the general resurgence of people returning to Midtown.
“So many lifestyle amenities, like private clubs, dining and wellness clubs, have moved into the Midtown area. Midtown has really become a lot more attractive for not just New Yorkers but international residents looking for pieds-à-terre,” said McKenzie Ryan of Douglas Elliman. “This will be a great litmus test for other residential buildings to either be converted or built.”
Apollo did not return a request for comment by press time to provide more details on its plans, but city records indicate that the project, located between West 41st and West 42nd streets, will include 659,968 square feet of residential space — likely rental units — and 247,592 square feet of commercial space.
It is also unclear at this time what amenities the newly converted residential building will include, but Gary Malin, chief operating officer at The Corcoran Group, said the entire project will likely be “well thought-out, well-designed and well-marketed” to successfully attract tenants.
“I think the city is starved for new housing. The people involved know real estate extremely well,” Malin said.
The Commercial Observer previously reported on the developers’ likely plans for an office-to-residential conversion in August.
Neither RXR nor SL Green responded to requests for comment by press time.
