Office-to-residential conversions haven’t fallen out of favor with the mayor.
Buckling columns at the former Pfizer headquarters in Midtown weren’t enough to deter the mayor’s pursuit of office-to-residential conversions as part of his broader housing plan for 200,000 units over the next decade.
The risky situation at 235 East 42nd Street on Tuesday was partially stabilized by Wednesday afternoon, but concerns remain about how the city’s largest residential conversion project proceeded without safeguards to prevent structural failures when adding floors to a former office building.
Mayor Zohran Mamdani insisted at a press conference Wednesday morning that structural issues with the project, led by David Werner and MetroLoft Management and architected by Gensler, aren’t inherent to the complex conversion process.
“Yes, I do continue to consider the conversion of office space into residential space as part of our answer to the housing crisis; I also consider that we have to do so safely and in a way that is fully accountable,” Mamdani said. “This is not a necessary consequence of an office-to-residential conversion. This, however, is clearly a breakdown in that process. ”
The mayor promised to conduct a full investigation on how the ex-Pfizer building conversion reached the point of structural failure, but didn’t specify how Department of Buildings officials may approach inspections differently at other office-to-residential job sites moving forward.
“As soon as this emergency work is concluded, DOB is going to be conducting a rigorous assessment and assuring that the plans and the site are fully compliant with all codes before any non-emergency work moves forward,” Mamdani said.
The MetroLoft project had generated seven DOB violations last year, with several construction safety issues arising on the site and multiple complaints of falling objects, along with a suspected fire or smoke incident that briefly halted work at the Midtown building last August.
The Mamdani administration’s SPEED task force has announced goals to reduce permitting timelines for conversion projects by approximately five months.
Office-to-residential projects already benefit from quicker timelines compared to ground-up developments. Many new projects have been greenlit over the years as developers sought to capitalize on 467m tax incentives and build in newly rezoned areas.
Conversions can even offer more attractive alternatives to conventional construction with lower project costs and quicker turnaround to bring new apartments online to earn rent in just over a year, compared to three years or more for ground-up projects.
The execution of these office overhauls, however, became a flashpoint after yesterday’s evacuation of the MetroLoft construction project and surrounding buildings.
Some tradespeople posited that non-union labor, insufficient steel reinforcement and cost-cutting were potential factors in the building’s structural failure, as Steamfitters Local 638 business agent Cliff Johnsen told reporters gathered near the former Pfizer building.
MetroLoft’s Nathan Berman disputed such claims and sought to quell concerns, telling my colleague Keith Larsen that reports of an impending collapse had been “blown a little bit out of proportion,” insisting that the building “was never at risk of collapse.”
What we’re thinking about: Are City Council or state lawmakers likely to impose more red tape or stricter labor standards on office-to-resi construction projects? Let me know what you think at ben.miller@therealdeal.com.
A thing we’ve learned: A musical about famed country singer Dolly Parton is headed to Broadway to celebrate her 81st birthday! “Dolly: A True Original Musical,” a show about the “Jolene” singer’s life and career, will begin previews in December.
— Spencer Davis
Elsewhere…
— Though Mayor Zohran Mamdani touted “fast and free buses” on the campaign trail, New Yorkers will have to settle for the first half — at least for now. Mamdani and Gov. Kathy Hochul announced at a press conference Wednesday morning a plan to make the city’s buses run 20 percent faster along 50 corridors that have the slowest buses and high ridership. The city transportation department also said at the Wednesday press conference that it will provide buses with dedicated lanes on 28 ongoing street redesigns, and the MTA added that it would allow passengers to board through rear bus doors by 2027 — a move which could effectively make the buses free anyway.
— Twenty-eight New Yorkers are sick with Legionnaires’ disease as of Wednesday morning amid an outbreak on the Upper East Side, amNY reported. Twenty-one of the infected patients have been hospitalized, but no deaths have been reported so far. (Last year, a Legionnaires’ outbreak in Harlem killed seven people.) Mayor Zohran Mamdani announced that the city will test cooling towers for Legionella, the bacteria that causes the illness, and require the tower’s owners to quickly clean them if they test positive.
— For New Yorkers, gnawed black plastic bags can only mean one thing: rats! Department of Sanitation workers found just that on an empty lot in Midtown acquired last year for $38 million. Unable to get past a padlocked gate to clean up the mess, DSNY is asking the courts to grant its workers access to the lot, Crain’s reported. The 9,000-square-foot lot beside 2 West 45th St. was acquired last year by Flushing-based developer Hiwin Group USA to build a 100,000-square-foot apartment tower.
— Spencer Davis
Closing time
Residential: The most expensive residential sale recorded Wednesday was $8.4 million for a 7,320-square-foot townhouse at 69 West 83rd Street on the Upper West Side. Deanna Kory with Corcoran had the listing. The home last sold for $8.3 million in May 2013.
Commercial: The most expensive commercial transaction was a combined $16.7 million for three properties. 3572-3576 DeKalb Avenue sold for $3.8 million and 3224 Grand Concourse for $8.1 million.
New to the Market: The highest price for a residential property hitting the market was $15 million for a 4,266-square-foot condominium at 30 Front Street in Dumbo. The Heyman-Cupolo Team with Sotheby’s has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 154,944-square-foot, 13-story project at 133-34 36th Road in Flushing. Ralph Kowalczyk with Issac & Stern Architects filed the permit on behalf of Tony Chen of Realport Group LLC.
— Matthew Elo
