Yellowstone Real Estate Investments Initiates Office-to-Residential Conversion in Midtown
Yellowstone Real Estate Investments has submitted a proposal to convert a 26-story office building located at 1730 Broadway into residential units. This development aims to transform the existing commercial space into 422 residential units, as indicated in recent filings with the New York City Department of Buildings.
Project Details and Financials
The plans for the office-to-residential conversion were filed by Tomer Posner, managing director of development at Yellowstone, with architectural services provided by BKSK Architects. According to the details in the filing, the estimated conversion cost for the 578,000-square-foot building—previously known as 1740 Broadway—is pegged at $34.7 million.
Yellowstone’s acquisition of the property took place last year, when the firm purchased it from the Blackstone Group for a reported $185.9 million, according to property records.
Trends in Midtown Conversions
While many office-to-residential conversion projects are primarily concentrated in Lower Manhattan, Midtown is experiencing a notable shift with increasing interest in such ventures. By October 2023, a total of 26 properties across the city were identified for conversion between 2020 and 2024, as reported by The Real Deal.
In Midtown specifically, prominent developers such as Apollo Global Management, SL Green Realty, and RXR are working on converting the office building at 5 Times Square into a mix of 942 residential units alongside commercial space. Similarly, Rudin’s proposal to transform the office tower at 355 Lexington Avenue into apartments is part of this emerging trend.
Comparison with Lower Manhattan Projects
Lower Manhattan remains active with numerous ongoing conversion initiatives, including projects at 222 Broadway, 2 Wall Street, and 80 Pine Street among others. The broad scope of these projects reflects a changing landscape in urban housing and commercial use, as developers increasingly seek to repurpose office space in response to evolving market demands.
Recent Acquisitions and Future Ventures
In addition to the 1730 Broadway project, Yellowstone recently acquired the shuttered East Maxwell hotel in Midtown for $140 million in October. This strategic purchase aligns with their ongoing commitment to redeveloping urban spaces and underscores the company’s proactive approach in the Manhattan real estate market.
Conclusion
The proposed conversion at 1730 Broadway is a significant step in Yellowstone’s ongoing efforts to adapt and revitalize office spaces in New York City. As Midtown continues to attract such projects, the city is poised for a transformative period in urban residential development.
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