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SL Green’s $805M conversion work pauses after Department of Buildings halt
The Department of Buildings halted construction at 750 Third Avenue and work also stopped at 222 Broadway before restarting soon after, Commercial Observer reports.
Commercial Observer reports the Department of Buildings halted construction on SL Green Realty’s $805 million office-to-residential conversion at 750 Third Avenue in Manhattan, and it also stopped work on a separate conversion project at 222 Broadway.
The outlet adds that work picked up again soon after at both projects, even as former developer Laura Rapaport, founder of C-PACE lender North Bridge, said the episodes could bring more scrutiny but also believes successful conversions can still be built in New York and other cities.
Commercial Observer argues that while the pauses and related disruptions put conversion activity “on notice,” the broader office-to-residential conversion wave is likely to continue because alternatives for new housing are limited.
The piece also notes that the state’s 485-x program faces slimmer margins due to inflation and other costs, and it cites Empire State Realty Trust’s funds from operations dip tied at least in part to a 28.5 percent year-over-year drop in visits to the Empire State Building.