Governor Hoch and Mayor Adams of New York announced a major redevelopment project yesterday (May 22) – Times Square 5 in Manhattan, a bustling commercial office building, will be transformed into a mixed-use residential building, providing up to 1,250 new residential units, including 313 units of permanently affordable housing.
The significant development project is overseen by the Empire State Development (ESD) of New York State. They will convert nearly 1 million square feet of office space into residential units while retaining over 37,000 square feet of retail space. The new residences will consist of 1,050 studio apartments and 200 one-bedroom units, with all residents having equal access to the building’s amenities. Among them, 313 units will be reserved for residents whose income does not exceed 80% of the median area income, serving as permanently affordable housing.
The project is located on Seventh Avenue between 41st and 42nd Streets, with convenient access to 12 subway lines and multiple regional commuter routes.
The building currently has a high office vacancy rate of 77%, and the redevelopment is expected to address the issue of vacancies while creating much-needed housing. Construction is scheduled to begin in the third quarter of 2025, with the first phase set to be completed in 2027. The project is also projected to create around 1,400 construction job opportunities and 830 direct and indirect long-term employment positions, with a commitment to a 30% participation rate for Minority- and Women-Owned Business Enterprises (MWBE).
Governor Hoch stated, “We are taking bold steps to unlock the potential of converting office buildings in New York City into residences. The transformation of Times Square 5 is the best demonstration of that. I will continue to work hard to ensure that all New Yorkers can afford good housing.”
Mayor Adams also commented, “We are rapidly creating new housing in every neighborhood, including the bustling Times Square. This is a model of state and city collaboration to address the housing crisis.”