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First Midtown South Office-to-Residential Conversion Moves Forward at 29 West 35th Street

New zoning with 467-m incentives unlocked financing to turn a distressed Midtown office into 107 studios with affordable rents.

Overview

  • Allegiant Real Estate Capital and 400 Capital provided financing, with additional equity from L&L Holding’s David Levinson and Terracotta Management, and L&L set to manage the project.
  • The plan sets aside 27 apartments at $1,701 per month under 467-m, with roughly 80 market-rate studios expected to rent around $4,000, meeting the 25% affordability requirement.
  • Studios will span roughly 400 to 575 square feet with 11- to 14-foot ceilings and in-unit washer/dryers, and most will include flexible spaces such as home offices or alcoves.
  • Amenities will include a rooftop with Empire State Building views, an outdoor movie screen, a doorman, bike and storage bins, a pet-wash station, and retail at the base.
  • Developers target first-quarter 2027 leasing after acquiring the largely vacant building for about $25 million, as the August rezoning opens 42 blocks to housing following LNR’s 2024 foreclosure.