The first major office-to-residential conversion under New York City’s Midtown South Mixed-Use Plan is underway. Marty Burger of Infinite Global Real Estate Partners and Andrew Heiberger of Buttonwood Development, along with 400 Capital Management (400CM), have acquired 29 West 35th Street with plans to create 107 boutique residences.
According to the joint-venture partners, this development will serve as a blueprint for the district’s transformation by repurposing underutilized office space into housing as part of the city’s commitment to deliver over 10,000 new residences in Midtown South.
Financing for the office-to-residential conversion was provided by Allegiant and 400CM, while additional equity partners include David Levinson of L&L and Terracotta Management.
In addition, the development benefits from a 35-year tax abatement through the 467-m program along with the Mandatory Inclusionary Housing program to create affordable housing units. Approximately 75% of the units will be market-rate, with 27 designated as affordable units at $1,701 per month.
“New York City is home to some of the world’s most beautiful and iconic structures, many of which have outlived their original commercial purpose but possess incredible architectural character that deserves preservation. Rather than tearing these buildings down, we have an incredible opportunity to breathe new life into them as homes for New Yorkers,” said Burger. “This is a model example of adaptive reuse of an obsolete building in which we are creating much-needed housing—both affordable and market-rate—in an environmental, social, and governance-compliant manner to create a residential enclave that will operate in a carbon-neutral environment after its conversions.”
The building sits three blocks south of Bryant Park and two blocks north of NoMad. It also is surrounded by retail, dining, and cultural landmarks.
“Midtown South is on the cusp of an incredible transformation, much like we saw in the Financial District, but with its own unique energy,” noted Heiberger. “The neighborhood has it all—great energy, excellent transit access, and top companies like Amazon and Salesforce anchored here—yet it lacks quality housing.”
The building’s crown jewel will be its expansive rooftop amenity space, with sweeping views, multiple seating areas, game tables, and a large outdoor movie screen for films and sporting events. Additional amenities will be a dedicated pet wash station, bike and storage bins, and a laundry facility with commercial-grade washers and dryers. Residents also will benefit from a state-of-the-start security system, a doorman, and three elevators.
Partners on the development include architect Ismael Leyva Architects, general contractor Archstone, and property manager L&L.
“Work patterns have shifted, and proximity to the office is now a top priority for Manhattan residents,” added Heiberger. “They seek efficiency as well as the ability to walk to work, to enjoy amazing restaurants, and to live in thoughtfully designed spaces. We’re delivering on that vision with 29 West 35th Street, where a true live-work lifestyle isn’t a luxury, but a priority.”
Ariel Property Advisors’ Ben Schlegel represented the developers on the debt, while the seller was represented by Colliers’ Zach Redding and Matt Mastrocola. Allegiant was represented by Richard Stanton.