Extell Development has proposed to transform a Midtown Manhattan office building into a multi-use residential space, The Real Deal reports, citing property filings.
Last month, the developer acquired the site at 655 Madison Avenue for $160 million. Now, the developer's plans call for demolishing the 200,000-square-foot building and replacing it with 193,000 square feet. The project would get commercial space, which could be ground-level retail and 62 residential units, The Real Deal noted.
The 655 Madison Avenue building last underwent renovation in 2005, with office rents ranging from $54 and $66 per square foot, according to CoStar's projections. The 24-story building was first constructed in 1951.
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As housing becomes more of a need, office-to-residential projects have become more prominent. In fact, CBRE said in a report that it expects office conversion projects to double this year compared with 2023. And activity is happening in Manhattan, with Vanbarton Group reportedly making two recent acquisitions, costing nearly a combined $200 million to transform offices into residential units.
Renter households have risen by 2.7 percent in the third quarter to 45.6 million, as houses become more unaffordable, according to a new Redfin report. New York City is one of the leaders in this trend, with 49.1 percent of households opting to rent in the region.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
