2 ms·

A few months ago Bloomberg's Odd Lots podcast had an episode on this: > Big cities like New York have two real estate problems. Housing is scarce and office bu

A few months ago Bloomberg's Odd Lots podcast had an episode on this: > Big cities like New York have two real estate problems. Housing is scarce and office buildings are empty (or at least under-utilized.) So there would seem to be an obvious solution: turn the offices into homes. And indeed there has been a lot of talk lately about "office-to-resi" conversions. But it's very hard, for a wide variety of reasons. Zoning, financing, and then, of course, the operational aspects of the construction all need to be in place. So what does it take? On this episode, we speak with Joey Chilelli, managing director at the Vanbarton Group, a firm that's been involved with these projects for a decade and long before the pandemic upended both real estate markets. We discuss the challenges involved in actually pulling off these complex projects. * https://omny.fm/shows/odd-lots/what-it-really-takes-to-convert-office-building https://omny.fm/shows/odd-lots/what-it-really-takes-to-conve... * https://www.youtube.com/watch?v=HNkLcD3PKyk https://www.youtube.com/watch?v=HNkLcD3PKyk

burningChrome 2y ago
I've only seen one successful project that was able to convert a business office to residential apartments/condos. If I remember correctly, the building had been vacant for a while (it was built in 1986) and the company who bought it got a really good deal and so the conversion was able to happen without having a massive amount to overcome in order to be profitable. The building just had the perfect layout and structure that made it suitable for a conversion. Ironically, the developer filed bankruptcy during the 2008 housing collapse and several other conversions he was aiming to do also went under. Here's some information about the project: Cloud 9 Sky Flats: https://www.homes.com/building/cloud-9-at-sky-flats-minnetonka-mn/psxcc29q9w658/ https://www.homes.com/building/cloud-9-at-sky-flats-minneton... A recent article about one of the condos going up for sale: https://www.startribune.com/corporate-office-turned-condo-in-minnetonka-could-be-yours-for-379000/600360285/#9 https://www.startribune.com/corporate-office-turned-condo-in...
- pydry 2y ago
  I used to live in one too (not yours). It's weird how often people would tell me that this was infeasible and impossible to do it at all. I also almost bought one that was in a converted school. I'm sure some people could come up with reasons for why that is impossible too. Zoning is the only absolute impediment I can think of and that is a self imposed one.
nine_k 2y ago
I've seen a conversion done a few years ago, say, 2019, right next to where I live, just south of Prospect Park. A blocky office building has been converted to a residential building, and then has been rented out very quickly. It's not a tower though, a relatively easy conversion. Large windows must be attractive for some though, especially those facing the park. Admittedly, it's Brooklyn, not Manhattan, and the adjacent blocks are residential.

burningChrome 2y ago

I've only seen one successful project that was able to convert a business office to residential apartments/condos. If I remember correctly, the building had been vacant for a while (it was built in 1986) and the company who bought it got a really good deal and so the conversion was able to happen without having a massive amount to overcome in order to be profitable. The building just had the perfect layout and structure that made it suitable for a conversion. Ironically, the developer filed bankruptcy during the 2008 housing collapse and several other conversions he was aiming to do also went under. Here's some information about the project: Cloud 9 Sky Flats: https://www.homes.com/building/cloud-9-at-sky-flats-minnetonka-mn/psxcc29q9w658/ https://www.homes.com/building/cloud-9-at-sky-flats-minneton... A recent article about one of the condos going up for sale: https://www.startribune.com/corporate-office-turned-condo-in-minnetonka-could-be-yours-for-379000/600360285/#9 https://www.startribune.com/corporate-office-turned-condo-in...

pydry 2y ago
I used to live in one too (not yours). It's weird how often people would tell me that this was infeasible and impossible to do it at all. I also almost bought one that was in a converted school. I'm sure some people could come up with reasons for why that is impossible too. Zoning is the only absolute impediment I can think of and that is a self imposed one.

nine_k 2y ago

I've seen a conversion done a few years ago, say, 2019, right next to where I live, just south of Prospect Park. A blocky office building has been converted to a residential building, and then has been rented out very quickly. It's not a tower though, a relatively easy conversion. Large windows must be attractive for some though, especially those facing the park. Admittedly, it's Brooklyn, not Manhattan, and the adjacent blocks are residential.