Several years after the pandemic, remote work and hybrid schedules are slowly fading away but still remain commonplace for many office workplaces, While it remains to be seen how this will affect Midtown East, a very office-heavy section of Manhattan, in the long term. There is little question that Class A offices will remain attractive, but the future is less certain for Class B and C office space.
These older office buildings are the likeliest candidates for residential conversions, and to jump-start construction, the state approved a new 467-m tax incentive program providing tax exemptions for up to 35 years on new dwellings where multiple units are created from non-residential space, and that contain requisite affordable housing. Marc Holliday, chairman and CEO of developer SL Green, told The Real Deal that he expects 20 to 40 million square feet of office space to become residential under the program; and that despite being able to get full benefits on projects begun by June 2026, he expects the conversions to begin sooner rather than later.
These older office buildings are the likeliest candidates for residential conversions, and to jump-start construction, the state approved a new 467-m tax incentive program providing tax exemptions for up to 35 years on new dwellings where multiple units are created from non-residential space, and that contain requisite affordable housing. Marc Holliday, chairman and CEO of developer SL Green, told The Real Deal that he expects 20 to 40 million square feet of office space to become residential under the program; and that despite being able to get full benefits on projects begun by June 2026, he expects the conversions to begin sooner rather than later.
In this article:
"This isn’t wait-and-see…you’ve gotta get going now" – Marc Holliday, Chairman & CEO, SL Green
But while many of Midtown's older office buildings remain in limbo, Murray Hill (defined here as Fifth Avenue to the East River between East 34th and 42nd Streets) remains desirable for its central location, relatively quiet environment, and interesting residential mix. Genteel townhouse blocks from when it was one of the city’s wealthiest neighborhoods remain beautifully preserved. On surrounding streets, new condos and rentals like One United Nations Park, HOUSE39, and The Murray are the latest entrants in a long line of new mid-range condos and rentals that have come online in recent years.
The streets of Murray Hill are about to look different in the wake of new projects (CityRealty)
Murray Hill (CityRealty)
Murray Hill average condo price per square foot (CityRealty)
These buildings, like their Murray Hill neighbors, are coveted for their easy access to the United Nations Headquarters, NYU Langone Medical Center, and Yeshiva College. They are also located in excellent proximity to the Morgan Library and Museum, Scandinavia House, and the new Korean Cultural Center a few blocks east of Korea Way. When people need to visit another part of the city, Grand Central Terminal offers a convenient, not to mention beautiful transportation hub.
Indeed, whatever happens with Midtown East office-to-residential conversions, Murray Hill is not sitting by; quite the opposite with several new projects in the works. The most notable/controversial is perhaps Soloviev Group’s Freedom Plaza, which is angling to bring a casino, performance venue, and museum to Murray Hill along with new condos and rentals. To the west, new pedestrian plazas are set to open at Pershing Square. 175 Park Avenue, the redevelopment of the Grand Hyatt Hotel next to Grand Central, is set to bring a new Hyatt Hotel, Class A offices, and much-needed public space to the area. Meanwhile, new condos and rentals are underway, and we look at notable projects below.
175 Park Avenue
Forthcoming Condo Developments
218 Madison Avenue
Developed by RYBAK Development | Design by IMC Architecture
10 stories | 26 units
Completion estimated for 2027
Developed by RYBAK Development | Design by IMC Architecture
10 stories | 26 units
Completion estimated for 2027
Unbuilt design from previous owner Blackhaus Development
RYBAK Group's Arloparc is doing brisk business on the Upper East Side, but the developer has not rested on its laurels; rather, turned its full attention to its new Murray Hill project. It is set to contain 26 spacious units across 10 stories with a penthouse among them. Details are not available about the amenities, but it will benefit from excellent proximity to the Morgan Library.
The new project will rise on the former site of a building that served as the mansion of the Archbishop of New York, a single-family home at the height of the Gilded Age, a club for “self-supporting women,” the headquarters of the American Review, and the home of various shops, offices, and small businesses over its extensive history (h/t Daytonian in Manhattan). However, it also underwent many structural and interior changes over the years with the result that many of its most memorable features have been removed.
The new project will rise on the former site of a building that served as the mansion of the Archbishop of New York, a single-family home at the height of the Gilded Age, a club for “self-supporting women,” the headquarters of the American Review, and the home of various shops, offices, and small businesses over its extensive history (h/t Daytonian in Manhattan). However, it also underwent many structural and interior changes over the years with the result that many of its most memorable features have been removed.
218 Madison Avenue, July 2024 (CityRealty)
40 East 35th Street
Developed by Continuum Co. | Design by SLCE Architects
18 stories | 137 units
Completion estimated for 2028
Developed by Continuum Co. | Design by SLCE Architects
18 stories | 137 units
Completion estimated for 2028
40 East 35th Street, July 2024 (CityRealty)
In June 2024, developer Continuum revealed plans for a luxury condominium project on the site of the historic Community Church of New York. The 18-story project will offer ground-floor commercial space, 137 residential units on top, a residential courtyard, and a 17-car parking garage. The buildings are still awaiting demolition as the developer expects to close on a construction loan later this year.
The church dates back to 1825, and has hosted Pete Seeger, Nelson Mandela, and a debate between Malcolm X and Bayard Rustin over the course of its long history. However, the church told Crain's New York Business that the cost of necessary repairs would have "wiped out" its endowment, and that it purchased a nearby new administrative building in the wake of the deal. It is not known where they will hold services, or if a new space for a house of worship was part of the deal for the new building.
The church dates back to 1825, and has hosted Pete Seeger, Nelson Mandela, and a debate between Malcolm X and Bayard Rustin over the course of its long history. However, the church told Crain's New York Business that the cost of necessary repairs would have "wiped out" its endowment, and that it purchased a nearby new administrative building in the wake of the deal. It is not known where they will hold services, or if a new space for a house of worship was part of the deal for the new building.
Forthcoming Rental Developments
251 East 39th Street
Developed by Brause Realty | Design by CetraRuddy
20 stories | 157 units
Completion estimated for 2025
Developed by Brause Realty | Design by CetraRuddy
20 stories | 157 units
Completion estimated for 2025
Rendering of 251 East 39th Street (Brause Realty)
A stretch of Second Avenue between East 39th and 40th Streets is set to look very different: A series of low-rise buildings have been demolished to make way for a new 20-story tower. Groundbreaking for the new building took place in late 2023, and a recent site visit saw it about halfway up. Renderings depict a glassy facade with multiple setbacks.
Upon completion, the project will feature a total of 157 units, 48 of which have been designated as affordable. Residential amenities are set to include a fitness center, coworking space, lounge, children's playroom, and roof deck. Moreover, at a time when the effects of climate change are impossible to ignore, the new building is set to feature solar panels on the roof, an electric infrastructure, and the use of vegan materials throughout.
Upon completion, the project will feature a total of 157 units, 48 of which have been designated as affordable. Residential amenities are set to include a fitness center, coworking space, lounge, children's playroom, and roof deck. Moreover, at a time when the effects of climate change are impossible to ignore, the new building is set to feature solar panels on the roof, an electric infrastructure, and the use of vegan materials throughout.
Zoning diagram (NYC Department of Buildings)
Construction progress, July 2024 (CityRealty)
650 First Avenue
Developed by Lalezarian Properties | Design by Ismael Leyva
11 stories | 111 units
Completion estimated for 2025
Developed by Lalezarian Properties | Design by Ismael Leyva
11 stories | 111 units
Completion estimated for 2025
Advertisement from the Kips Bay Brewing Co. that used to be housed at 650 First Avenue (Princeton International Properties)
Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
The building at 650 First Avenue was constructed in 1904 as the headquarters of a brewery. It later served as the home of NYU Langone Health's internal medicine offices. Most recently, developer Lalezarian Properties bought the building for $33.5 million in April 2023 with plans to turn it into a mixed-use building with a residential component.
The conversion will only apply to the southern wing of the building, and four floors are being added. Details are not available about the apartments or amenities, but the address and height allow for beautiful East River views. Its proximity to NYU Langone Medical Center will also benefit students and doctors alike.
The conversion will only apply to the southern wing of the building, and four floors are being added. Details are not available about the apartments or amenities, but the address and height allow for beautiful East River views. Its proximity to NYU Langone Medical Center will also benefit students and doctors alike.
Aerial view of construction progress (CityRealty)
650 First Avenue's addition on the rise, July 2024 (CityRealty)
210 and 235 East 52nd Street
Developed by Metro Loft Management in partnership with David Werner | Designer TBD
33 stories | 1,500+ units
Completion estimated for 2027
Developed by Metro Loft Management in partnership with David Werner | Designer TBD
33 stories | 1,500+ units
Completion estimated for 2027
Pfizer buildings, summer 2024 (CityRealty)
When Pfizer announced plans to move its headquarters to The Spiral in Hudson Yards, speculation immediately began about what would happen to its office space at the nexus of Murray Hill and Turtle Bay. Some expected that the owners would take advantage of the Midtown East rezoning to demolish it and build a soaring new tower. Instead, the team has announced plans to take advantage of unused air rights to add several new stories as it converts the offices to residences. This is set to dethrone the forthcoming 25 Water Street (another Metro Loft project) as the city's largest office-to-residential conversion.
In addition to reconfiguring the interiors into legal living spaces, the conversion will include replacing all the windows and installing a more energy-efficient facade. By the time lease signings commence (estimated for mid-2026), the building will have a new name and a new address.
In addition to reconfiguring the interiors into legal living spaces, the conversion will include replacing all the windows and installing a more energy-efficient facade. By the time lease signings commence (estimated for mid-2026), the building will have a new name and a new address.
162 East 36th Street
Developed by Gilar Realty | Design by Ismael Leyva
22 stories | 160 units
Completion estimated for 2027
Developed by Gilar Realty | Design by Ismael Leyva
22 stories | 160 units
Completion estimated for 2027
Rendering of 162 East 36th Street (Gilar Realty)
The new rental at Third Avenue and East 36th Street is still in very early stages. Demolition of the five-story building previously on the site wrapped up earlier this year, and a more recent site visit saw excavation work underway.
Upon completion, renderings show a glassy, Art Deco-esque tower soaring above the brick buildings on the block. The 16th-floor setback will result in terrace space, and the zoning diagram shows an outdoor courtyard. Further details about the apartments and amenities are not yet available.
Upon completion, renderings show a glassy, Art Deco-esque tower soaring above the brick buildings on the block. The 16th-floor setback will result in terrace space, and the zoning diagram shows an outdoor courtyard. Further details about the apartments and amenities are not yet available.
Construction progress, July 2024 (CityRealty)
567 Third Avenue
Developed by Lalezarian Properties | Design by SLCE Architects
34 stories | 200 units
Completion estimated for 2027
Developed by Lalezarian Properties | Design by SLCE Architects
34 stories | 200 units
Completion estimated for 2027
567 Third Avenue (Corcoran Group)
Directly to the west of its project at 650 First Avenue (see above), Lalezarian Properties is at the helm of a new building planned for Third Avenue between East 37th and 38th Streets. Permits call for no more than five units per floor as well as cellar-level amenity space and ground-floor retail space.
According to an early report, this project will bring the most units to Murray Hill since 2019. However, it will be some time before it is delivered: Demolition has started on one of the low-rise buildings in the assemblage, and work has been slow.
According to an early report, this project will bring the most units to Murray Hill since 2019. However, it will be some time before it is delivered: Demolition has started on one of the low-rise buildings in the assemblage, and work has been slow.
Other Uses
Turken House, 300 East 41st Street
Developed by The Turken Foundation | Design by Perkins & Will Architects
21 stories | 82 units
Completion estimated for 2024
Developed by The Turken Foundation | Design by Perkins & Will Architects
21 stories | 82 units
Completion estimated for 2024
Rendering of Turken House (Perkins & Will Architects) Photo from July 2024 in it's final stretch of construction
Down the street from the United Nations Headquarters, and a stone's throw from a glistening new headquarters for the Turkish embassy, work is underway on Turken House, a new tower conceived as a cultural center and housing for Turkish students studying in Manhattan. Construction paused during the pandemic, but a recent site visit saw the tower on its way up and the facade starting to rise.
Upon completion, Turken House will stand out in the streetscape for its glass curtain wall, 15th-story setback, and geometrically patterned screen with echoes of Islamic architecture. It will provide single and double rooms for students with full furnishings, paid utilities, and prices well below market rate. Amenities are set to include study rooms, bike storage, a gym, a lounge, and a prayer room.
Upon completion, Turken House will stand out in the streetscape for its glass curtain wall, 15th-story setback, and geometrically patterned screen with echoes of Islamic architecture. It will provide single and double rooms for students with full furnishings, paid utilities, and prices well below market rate. Amenities are set to include study rooms, bike storage, a gym, a lounge, and a prayer room.
Freedom Plaza
Developed by Soloviev Group | Design by Bjarke Ingels Group
50-60 stories | 1,325 units
Completion TBD
Developed by Soloviev Group | Design by Bjarke Ingels Group
50-60 stories | 1,325 units
Completion TBD
Rendering of Freedom Plaza (Negativ)
Since 2000, when it was still known as Solow Building Company, developer Soloviev Group has owned the 6.7-acre former site of a Con Edison substation between East 38th and 41st Streets east of First Avenue. Plans for a life science and biotechnology center were unveiled in July 2017, and art exhibition Field of Light at Freedom Plaza is currently on display, but the developer is now thinking bigger than that as it aims for one of New York's casino licenses.
In February 2023, Soloviev Group revealed grand plans for the site with a partially subterranean casino operated by Mohegan as the cornerstone. Two residential towers are expected to contain a mix of studio to three-bedroom condos and rentals. Additional components include two hotel towers, public green space, new retail space, and a Museum of Freedom and Democracy that would include pieces of the Berlin Wall.
In the months that followed, plans for a giant Ferris wheel on the site were nixed, and the developer sought to sweeten the deal by promising that the residential component would include 513 permanently affordable units priced at an average of 80% or below the average median income. However, the affordable housing component is entirely contingent on whether Soloviev Group gets the casino license, and it is not clear what will happen to the site if someone else gets it. It will take some time before we find out: The casino license announcement is not expected until mid-2025.
In the months that followed, plans for a giant Ferris wheel on the site were nixed, and the developer sought to sweeten the deal by promising that the residential component would include 513 permanently affordable units priced at an average of 80% or below the average median income. However, the affordable housing component is entirely contingent on whether Soloviev Group gets the casino license, and it is not clear what will happen to the site if someone else gets it. It will take some time before we find out: The casino license announcement is not expected until mid-2025.
Field of Light on the Freedom Plaza site with the Long Island City skyline in the background (Ondel)
Featured new rental and condo listings
Eastlight, #20E (CORE Group Marketing LLC)
325 Fifth Avenue, #18F (Douglas Elliman Real Estate)
425 Fifth Avenue, #32B (Nestapple Inc)
172 Madison, #11B (Douglas Elliman Real Estate)
One United Nations Park, #41H
$3,995,000
Murray Hill | Condominium | 3 Bedrooms, 3.5 Baths | 2,097 ft2
One United Nations Park, #41H (Corcoran Sunshine Marketing Group)
Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
Would you like to tour any of these properties?
6sqft delivers the latest on real estate, architecture, and design, straight from New York City.
