A largely vacant office tower in Times Square is set to become a mixed-use development with 1,250 new homes. The Empire State Development (ESD) on Thursday voted to approve the conversion of 5 Times Square, a 38-story building on 7th Avenue between 41st and 42nd Streets. About 313 apartments will be permanently affordable to New Yorkers earning up to 80 percent of the area median income in exchange for a tax exemption under a new office-to-housing incentive, 467-m.
Designed by Kohn Pedersen Fox, 5 Times Square, also known as 592 Seventh Avenue, was built in 2002 as the headquarters for Ernst & Young, which left the building in 2022. According to the ESD, the building is currently 80 percent empty, with just nine stories of office space leased in the building.
As 6sqft previously reported, Apollo Global Management filed plans late last year to develop the site in partnership with RXR and SL Green. The building is owned by the city, and RXR holds a long-term ground lease.
Designed by Gensler, the project will repurpose over 900,000 square feet of office space and maintain about 37,000 square feet of existing retail space. According to Mayor Eric Adams’ office, there will be 1,050 studio apartments and 200 one-bedroom apartments.
The conversion is made possible by state legislation that removed the 12 floor-to-area ratio cap and created the new 467-m tax incentive program, which incentivizes the conversion of office space into housing and provides a tax break to developers if at least 25 percent of units are set aside as affordable. The project allows a residential FAR of up to 32.07 because the building was originally built to a FAR of about 33.35.
Thursday’s vote by the ESD Board of Directors approved an amendment to the state’s 42nd Street Development Project General Project Plan to allow for residential use on the site.
“We took bold action to unlock major office-to-housing conversions in New York City, and transforming 5 Times Square from underused offices into 1,250 new homes — including over 300 permanently affordable apartments — is a prime example of how we’re getting it done,” Hochul said.
“As I’ve made clear, the only way to address our housing crisis is to build more of the homes New Yorkers need — and I’ll never stop working to make that a reality.”
According to officials, the configuration of the site is “well-suited” for a residential conversion and would not require changes to the building envelope. The project will also maintain the character of the neighborhood with street-level retail and signage “reflective of Times Square.”
Construction is expected to begin by the end of the year, and the first phase is expected to be complete by 2027.
The Times Square project is one of the largest conversions in the city and joins other massive projects, including 25 Water Street, formerly the headquarters for JPMorgan Chase and the New York Daily News and now 1,300 apartments, the former Midtown East headquarters for Pfizer, slated to become 1,500 apartments, and 55 Broad Street, former Goldman Sachs offices converted into 571 new homes.
Earlier this month, the city announced plans to rezone the commercial building at 395 Flatbush Avenue Extension in Downtown Brooklyn to allow for a 72-story building with over 1,200 apartments. Up to 379 units would be designated as affordable.
“The reimagining of 5 Times Square represents a transformative approach to New York’s housing and economic challenges,” Hope Knight, president, CEO, and commissioner of Empire State Development, said.
“By converting nearly 1 million square feet of office space into homes — with 25 percent permanently affordable — we’re advancing our strategy to revitalize central business districts and create truly mixed-income communities. This project harnesses Times Square’s unmatched transit connections and commercial energy while addressing our critical housing needs, building upon our ongoing efforts to adapt underutilized commercial spaces for residential use in high-opportunity areas.”
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