NEW YORK (BLOOMBERG) -- New York City developers Marty Burger and Andrew Heiberger are embarking on one of the first office-to-residential conversion projects in an area of Manhattan known as Midtown South.
A joint venture led by the duo plans to invest nearly $70 million into the redevelopment of 29 W. 35th St., according to a statement. The office building, purchased for roughly $25 million, will become 107 studio apartments.
It’s the latest among a growing list of struggling office properties finding new life as housing across the city.
“NYC is in desperate need of residential housing,” Burger, the founder of Infinite Global Real Estate Partners, said in an interview. “We hope to do many more.”
The studios will range from 400 to 575 square feet. Most of the units will have flexible spaces including home offices, alcoves or bonus rooms.
It’s the first major office-to-housing conversion to follow recent zoning changes in Midtown South. The building sits just a few blocks south of Bryant Park and will include a rooftop amenity space with an outdoor movie screen, game tables and seating areas, according to the statement.
The venture is opting to offer only studio apartments because the building is well-suited to those layouts and because it fills a need in the area, Burger said. Its proximity to Grand Central Terminal and Penn Station could draw professionals looking for a second home in the city, he said.
The building will include 27 below-market units, to be leased for $1,701 per month, in accordance with a new tax-incentive program. They enable the project to benefit from a 35-year tax abatement.
Market-rate units will rent for closer to $4,000 per month, Burger said. They plan to begin leasing in the first quarter of 2027.
Burger was the former chief executive officer of Silverstein Properties. Heiberger is the founder of Buttonwood Development.
Allegiant Real Estate Capital provided financing. Additional equity partners include David Levinson, chairman of L&L Holding Co., Terracotta Management and 400 Capital Management, according to the statement.
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