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The venture, which includes Silverstein Properties and Metro Loft, has agreed to pay $180 million for the 30-story building that opened in 1967 and has housed numerous technology and financial-services tenants over the decades. The new owners plan to convert it into 571 market-rate apartments, ranging from studios to three bedrooms, during the next three to four years…. [Metro Loft founder Nathan] Berman estimated that converting 55 Broad will cost about one third less than what it would cost to build a new apartment building on the site.
So that’s how Eric Adams can bring life back to the formerly vibrant and buzzing, uh, Financial District?
Nope.
Office pricing would have to drop 25% to 50% lower than it is today for a conversion wave to have more than a marginal impact on housing production and commercial property use, according to Jeffrey Havsy, an analyst at Moody’s who tracks commercial real estate. Office-to-residential conversions “will not be something that will A.) solve our housing crisis or B.) be such a dramatic trend that it will significantly change our cities,” he said.
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