Plans filed to transform Times Square office building into 942 apartments
Exterior of 5 Times Square. Image via WikiCommons
A coalition of prominent New York City real estate figures has filed plans to transform a 39-story office building in Times Square into more than 900 new homes. As reported by The Real Deal, Apollo Global Management, in partnership with RXR and SL Green, aims to convert 5 Times Square into a mixed-use building with 942 apartments. This office-to-residential conversion would be one of the largest in the city to date, and the first in the heart of Times Square.
Developed by Boston Properties and designed by Kohn Pedersen Fox Associates, 5 Times Square was completed in 2002. The tower stands out for its distinct glass facade and the large billboards that line the perimeter of its lower stories.
Spanning 1.1 million square feet, the building will feature a “triptych”—part residential, part retail, and part office space. The filed plans indicate that floors 30 through 39 will remain unchanged, according to The Real Deal.
The development team has chosen Gensler, a leading architectural firm with experience in conversion projects, as the architect.
While Midtown has seen a rise in office-to-residential conversion projects due to increasing office vacancies and a newly passed tax incentive, no developers have yet sought to create homes in the heart of Manhattan’s tourist center.
The incentive, known as 467-m, gives developers a tax break if at least one-quarter of the units in their office conversion are designated as affordable housing. Apollo reportedly plans to use this incentive for their project.
5 Times Square currently sits 80 percent vacant, but streaming giant Roku signed a lease for 240,000 square feet in January 2022. The company will reportedly stay in the building.
In November, Apollo, RXR, and SL Green closed a recap for 5 Times Square that involved a modification of the building’s $1.3 billion loan as well as a future $200 million equity infusion, as reported by Commercial Observer.
The modification allows the developers to use loan proceeds, originally allocated for tenant improvements and office expansions, for a mixed-use conversion featuring office, retail, and residential. The loan was provided by Morgan Stanley, AIG, and Apollo in September 2022.
In August 2020, RXR invested $200 million to renovate 5 Times Square, adding a restaurant, spa, golf simulator, co-working space, residential amenities, and a party room, according to The Real Deal.
The Times Square conversion will join the ranks of the city’s largest office-to-residential projects. In June, Metro Loft, known for leading many of NYC’s conversions, announced that it would transform Pfizer’s former Midtown headquarters into a 1,500-unit rental property—the largest office-to-residential conversion in the city to date.
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