T
he trend of converting commercial buildings into housing is gaining momentum in New York City once again. Developers such as Vanbarton Group, Metro Loft, and GFP Realty are leading the charge, with several high-profile projects underway. Vanbarton's plans to transform 77 Water Street into approximately 600 rental units follow its successful conversion of Pearl House at 160 Water Street. The company has also converted 180 Water Street into a 570-unit building and is working on transforming a former WeWork space.

    Metro Loft, led by Nathan Berman, has several projects in the pipeline, including an agreement to convert Pfizer's former headquarters at 219-235 East 42nd Street into roughly 1,500 rentals. However, Berman faces challenges with his completed conversion of 20 Broad Street, where Metro Loft is poised to default on a $250 million mortgage despite 98 percent occupancy.

    Other notable conversions include the Flatiron Building, which will be transformed into 60 condominium units without significantly altering its exterior. The Brodsky Organization, GFP Real Estate, and Sorgente Group are behind this project, aiming to finish by 2026. A TRD analysis identified 26 properties slated for conversion across New York City, with filings submitted between 2020 and 2024.

    Developers are eyeing several high-profile office buildings for conversion, including Pfizer's former headquarters, J.P. Morgan Chase's former hub at 25 Water Street, and the McGraw-Hill Building on West 42nd Street. These conversions will bring new residential options to various neighborhoods across the city, but also pose challenges such as navigating lease buyouts and securing financing.