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NYC conversions under 467-m yield far more apartments than 485-x
An analysis by Latent Urban Ventures founder Nate Bliss estimates 467-m projects are slated to deliver up to 20,876 apartments, versus 11,869 under 485-x.
New York City apartment production is diverging sharply between two state tax incentives, with office-to-residential conversion projects under 467-m generating far more units than new multifamily construction under 485-x, Commercial Observer reports. Commercial Observer cites an analysis by Latent Urban Ventures founder and principal Nate Bliss, who compared average project output across the incentives. He says the average office-to-residential conversion project under 467-m produces 298 apartments, while the average new construction project under 485-x creates just 39.4 units. The outlet links the difference to the structure of 485-x, which includes construction wage minimums of $40 an hour. According to Bliss, those requirements appear to steer many developers toward a 99-unit limit for new multifamily buildings in much of the city, while 467-m has no wage requirement and is designed for office-to-residential conversions. Bliss also provided pipeline figures included completed and planned work. He estimates 55 conversions are filed or underway under 467-m, with another 15 in active plan review, for up to 20,876 apartments and 5,219 potentially designated as permanently affordable. For 485-x, he found 301 prospective registrations for 11,869 intended apartments, with 2,557 affordable, including 30 registrations at exactly 99 units and only three projects above the 99-unit threshold.