iPark’s Billy Lerner Eyes 71K SF Residential Tower to Replace Hell’s Kitchen Garage

Key Points:

• iPark owner Billy Lerner plans to replace a six-story parking garage in Hell’s Kitchen with a 71,818 SF residential building
• About 25% of units would be affordable at 60% AMI
• The $14M site, acquired in 2013, could deliver new housing by early 2029

Garage Owner Pivots to Housing

A longtime Manhattan parking operator is shifting gears in Hell’s Kitchen. William Lerner, owner and president of iPark, is proposing to replace a six-story, 205-space parking garage with a new residential development. The 5,028 square foot lot sits between Eighth and Ninth avenues and has operated as a garage for roughly 25 years. Lerner purchased the property in 2013 for $14 million.

71K SF Residential Plan

The proposed project would span 71,818 square feet, largely dedicated to housing. Roughly 25% of the units would be set aside as affordable housing, targeting households earning up to 60% of the area median income, or about $87,480 for a family of three. That affordability component could help the project secure zoning or density incentives under the city’s housing programs.

Strategic Shift for Parking Portfolio

Founded in 1962 with a 25-car lot, iPark now operates more than 100 parking facilities across the five boroughs, primarily in Manhattan. The Hell’s Kitchen proposal reflects a broader trend: underutilized garage sites are increasingly viewed as redevelopment opportunities, particularly in transit-rich neighborhoods where housing demand remains strong. As vehicle usage patterns evolve and land values remain high, surface lots and older garages have become prime candidates for residential conversion.

Timeline and Next Steps

The land use application was filed by Olga Abinader of Matrix New World Engineering on behalf of iPark. If approved, demolition and construction are expected to take approximately 18 months, with completion targeted for early 2029.

Final Thoughts

The Hell’s Kitchen proposal underscores a clear trend in Manhattan: legacy parking assets are being repositioned into housing plays. For landlords and investors, the math increasingly favors vertical residential density over car storage, especially in core neighborhoods where supply constraints support long-term rental demand.