Transit-Oriented Development Goals in Manhattan’s Central Business District, Help Fulfill Mayor Adams’ “Manhattan Plan” to Build 100,000 New Homes Across Borough Over Next Decade
Our Bureau
New York, NY
New York City Mayor Eric Adams and New York Governor Kathy Hochul have announced that the Empire State Development (ESD) Board of Directors has approved an amendment to the 42nd Street Development General Project Plan to enable the conversion of underutilized office space at 5 Times Square into vibrant mixed-use housing that will create 1,250 new homes, including hundreds of affordable homes. The transformation of the contemporary office building — originally constructed in 2002 as headquarters for Ernst & Young, which departed the building in 2022 — will create up to 1,250 new rental units, including approximately 313 permanently affordable homes for New Yorkers earning up to 80 percent of the area median income.
The project will participate in the Adams’ administration Office Conversion Accelerator and is made possible by policies advocated for and won by Mayor Adams in Albany, and enacted by Governor Hochul and the New York state Legislature, including the removal of the 12 “floor-to-area ratio” (FAR) residential cap — which had previously limited housing density in New York City — as well as the new 467-m tax incentive program — which incentives the conversion of office space into housing. This transformation also highlights the continued New York City and New York state partnership in addressing the housing crisis, with the New York City Economic Development Corporation (NYCEDC) helping to facilitate the redevelopment of city-owned assets like ESD’s new 5 Times Square project for the creation of new housing units.
“Confronting a decades-long housing crisis requires creating new housing in every neighborhood at an accelerated pace — even here at the ‘Crossroad of the World’ in Times Square,” said Mayor Adams. “The transformation of 5 Times Square from an underutilized office building into 1,250 new homes capitalizes on hard-fought Adams and Hochul administration victories while fulfilling my plan to build 100,000 new homes in Manhattan over the next decade. Thank you, Governor Hochul, for your continued partnership in delivering the affordable housing New Yorkers need and for proving, once again, what can be accomplished when the city and state work together towards a common goal.”
“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,” said Governor Hochul. “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.”
“5 Times Square is a game-changer for Times Square and Midtown, paving the way for the future of urban growth,” said Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión, Jr. “By converting underutilized office space into over a thousand new homes, including hundreds of affordable units, we’re reimagining central business districts as vibrant, mixed-use communities that foster both residential life and economic opportunity.”
“The transformation of nearly 1 million square feet of office space at 5 Times Square to mixed-income housing is yet another way our city-state partnership is working to deliver for New Yorkers,” said NYCEDC President and CEO Andrew Kimball. “This project — one of the largest office-to-housing conversions in the New York City’s history — will address the immediate, critical need for more housing, while leveraging iconic, city-owned property as a place not just to do business, but as a 24/7 live, work, and play destination.”
“The reimagining of 5 Times Square represents a transformative approach to New York’s housing and economic challenges,” said Hope Knight, president, CEO, and commissioner, Empire State Development President. “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.”
5 Times Square — located at the crossroads of New York City’s transit network on Seventh Avenue between West 41st and West 42nd Streets — will repurpose approximately 917,745 square feet of office space while preserving 37,311 square feet of retail. The project will create roughly 1,250 new homes — a diverse mix of 1,050 studios and 200 one-bedroom units — with equal access to building amenities for all residents. The conversion addresses the office building’s high vacancy rate of 77 percent, transforming an underutilized property into much-needed housing. Construction is anticipated to begin by the end of 2025, with the first phase expected to be completed in 2027, creating approximately 1,400 construction jobs and 830 direct and indirect permanent jobs.
Additionally, 5 Times Square is participating in Mayor Adams’ Office Conversion Accelerator program that assists the adaptive reuse of vacant office buildings in planning and construction approvals. The program facilitates communication between developers and agencies such as NYCEDC and the New York City Department of Housing Preservation and Development, which will administer the 467-m program.
This is some awesome news. New York needs more affordable housing. A job well done by the Mayor and Governor.