The wave of office-to-residential conversion projects is continuing across Manhattan, with CSC Real Estate announcing a new project. The developer said that it has secured a $108 million construction loan to transform a 17-story building in Murray Hill into 140 residential units.
Slate Property Group's financing arm, SCALE Lending, provided the debt, with Arrow Real Estate Advisors brokering the deal.
Previously, CSC paid $52 million to acquire the roughly 237,000 square foot site at 770 Second Avenue. The project plans call for converting 12 of the floors into residential units, with 35 getting set aside under the affordable category. Plus, the site will include about 11,000 square feet of new amenity space.
"This transaction reflects continued lender appetite for well-located conversion opportunities in New York City," Morris Betesh, founder of Arrow Real Estate Advisors, said in a statement.
"CSC has demonstrated a strong ability to execute on complex repositionings, and 770 Second Avenue is well-positioned to meet the growing demand for high-quality rental housing in Murray Hill."
This is far from CSC's first redevelopment project. Notably, in 2021, the New York-based firm completed the office-to-residential conversion of 75 Maiden Lane in Lower Manhattan, which now features 300 apartments.
Additionally, CSC isn't done and said that it plans to announce three conversion transactions that took place during the first quarter. While it did not specify the regions or submarkets, CSC said they are located in "prime urban neighborhoods."
A recent Cushman & Wakefield report revealed that office-to-residential transformations are slated to almost double this year, with 9.8 million square feet of office space now in the planning stages. Over 51 of the proposed conversions are in Midtown.
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