🏙️ From Desks to Doors: Iconic Times Square Office Tower to Be Transformed into 1,250 Apartments in RXR-Led Midtown Conversion

One of the most recognizable office towers in New York City — 5 Times Square — is set for a dramatic transformation. Once the high-profile headquarters of Ernst & Young, the 38-story tower is pivoting to residential, with plans to deliver 1,250 new apartments in the heart of Midtown Manhattan.

The conversion, led by RXR, in partnership with Apollo Global Management and SL Green, was greenlit last week by the Empire State Development board, marking another milestone in the city's ongoing effort to rethink obsolete office stock in the post-pandemic market.

“Through innovative public-private partnerships, we can transform underutilized office spaces into a thriving residential community,” said RXR CEO Scott Rechler. “This helps address New York’s pressing housing crisis.”

Built in 2002, the tower spans the block between West 41st and 42nd streets, and has struggled with an 80% vacancy rate since Ernst & Young relocated in 2022. The upcoming conversion will repurpose over 900,000 square feet of office space into a mix of 1,050 studio apartments and 200 one-bedroom units, while preserving 37,000 square feet of retail space at street level.

🔁 Office-to-Residential Trend Gains Steam

The 5 Times Square project joins a growing wave of large-scale office-to-residential conversions across New York City. Recent examples include:

• 25 Water Street (formerly JPMorgan Chase HQ)

• 55 Broad Street (Goldman Sachs’ former Wall Street base)

• 395 Flatbush Ave. Extension in Downtown Brooklyn

• The conversion of Pfizer’s former HQ into 1,600 units

The 5 Times Square deal also capitalizes on new tax incentives aimed at encouraging the transformation of underutilized commercial space into housing. As part of the agreement, 25% of the new apartments will be permanently affordable, reserved for households earning up to 80% of the area median income.

“Confronting a decades-long housing crisis requires creating new housing in every neighborhood — even here at the ‘Crossroads of the World,’” said NYC Mayor Eric Adams.

🚧 What’s Next?

Construction is slated to begin by late 2025, with phase one expected to deliver by 2027. The project signals both a new chapter for one of Midtown’s marquee properties and a broader market shift as New York developers seek value in vacancy — and housing in high-rises once dominated by corner offices.

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