Chess Builders’ Starline Tower Nears Completion in Midtown With 138 Rentals and $79M S3 Capital Loan

Key Points:

• Starline Tower at 250 West 49th Street is nearing completion with 138 rental units, including 42 affordable apartments
•  Chess Builders secured a $79M loan from S3 Capital and built under a 35 year 421 a tax abatement
•  The project adds 2,500 SF of retail in Midtown near Times Square with strong transit access

Midtown Rental Supply Expands Near Times Square

Construction is wrapping up on Starline Tower, a 28-story residential building at 250 West 49th Street in Midtown Manhattan. Designed by S. Wieder Architect and developed by Chess Builders, the project will deliver 138 rental units, with 42 designated affordable. The property sits steps from Eighth Avenue and within walking distance of major subway lines serving Times Square and the Theater District, a location that supports long term rental demand and liquidity.

Affordable Housing and 421 a Incentives

Of the 138 apartments, 42 units are reserved for households earning 70 to 130 percent of the area's median income. The building was developed under a 35 year 421 a tax abatement, a major incentive that continues to shape multifamily feasibility in New York. Chess Builders also secured a $79M construction loan from S3 Capital, highlighting continued lender appetite for well-located rental product in core Manhattan despite tighter capital markets. For investors, this underscores that projects with tax incentives and balanced income bands remain financeable in high-barrier submarkets.

Retail Component and Amenity Arms Race

The project includes 2,500 square feet of ground-floor retail, modest in scale but valuable in a Midtown corridor with strong pedestrian flow. On the residential side, the amenity package is aggressive and reflects today’s competitive leasing environment. Features include a fitness center, screening room, art and music rooms, golf simulator, business center, landscaped courtyard, zen garden, bocce court, and children’s play areas. In a neighborhood saturated with hospitality and high-end rental competition, amenities are a differentiator, not a luxury.

Replacing Obsolete Office With Housing

The site previously held an eight-story commercial building. Its replacement with rental housing reflects a broader Manhattan shift toward residential conversion and ground-up development in mixed-use corridors. With limited new 421 a projects in the pipeline following the program’s expiration, Starline Tower represents part of the final wave of tax advantaged rental supply in Midtown. That could support future rent growth as new development slows and replacement costs remain elevated.

Final Thoughts

Starline Tower adds scale to Midtown’s rental inventory while benefiting from tax incentives, strong transit connectivity, and institutional financing. For landlords and investors, the message is clear. Well-located, amenity-rich multifamily in core Manhattan remains financeable and leaseable, especially when backed by structured incentives and experienced sponsorship.