Another Office-to-Residential Conversion Planned as NoMad Building Trades
The Elad Group has purchased 419 Park Avenue South for $72 million. The approximately 200,000-square-foot building located at the southeast corner of East 29th Street was sold by longtime owner Walter & Samuels. Not opting to use the New York State tax incentive that applies to rental conversions only and requires the inclusion of affordable housing, new ownership plans to convert the 20-story office building built in 1927 to a 100-unit market-rate residential condominium. Due to a “years-ago zoning change,” the planned project will not require city approval and construction is expected to be completed in 2026. Currently about 40% occupied, most of the remaining leases are expiring by 2027 according to the press release. WeWork was among a tenant, having leased nearly 68,000 square feet across five floors in 2019; however, the lease was among many others that were torn up during the co-working firm’s recently concluded bankruptcy proceedings, resulting in a loss in rent owed to Walter & Samuels of $2.6 million.