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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