Marty Burger of Infinite Global Real Estate Partners and Andrew Heiberger of Buttonwood Development, in partnership with 400 Capital Management LLC (400CM) have acquired 29 West 35th St., marking the first major office-to-residential conversion under New York City’s new Midtown South Mixed-Use Plan.
The joint venture will introduce 107 boutique residences, offering a distinct alternative to the area’s large-scale rental developments. Financing for the project was provided by Allegiant and 400CM, while additional equity partners include David Levinson of L&L and Terracotta Management. The project will serve as a blueprint for the district’s transformation by repurposing underutilized office space into much-needed housing as part of the city’s commitment to deliver over 10,000 new residences across Midtown South.
“New York City is home to some of the world’s most beautiful and iconic structures, many of which have outlived their original commercial purpose but possess incredible architectural character that deserves preservation. Rather than tearing these buildings down, we have an incredible opportunity to breathe new life into them as homes for New Yorkers,” said Burger. “This is a model example of adaptive re-use of an obsolete building in which we are creating much-needed housing – both affordable and market rate – in an ESG (Environmental, Social and Governance) compliant manner to create a residential enclave that will operate in a carbon neutral environment after its conversion. The city’s rezonings, led by the Mayor’s office, City Council and City Planning, made this possible, and we are proud to be at the forefront of this transformation in Midtown South.”
The residences will consist entirely of studios ranging from 400 to 575 square feet, featuring soaring ceilings of 11 to 14 feet, designer kitchens, natural light and in-unit washer/dryers. Notably, 70% of the units will include flexible spaces such as home offices, alcoves or bonus rooms.
The project utilizes the new 467-m real estate tax abatement program along with the Mandatory Inclusionary Housing program to create affordable housing units which will co-exist with market rate units, enabling the project to benefit from a 35-year tax abatement program. Of the total units, approximately 75% will be market-rate, with 27 designated as affordable units at $1,701 per month through the inclusionary housing program.
An expansive rooftop amenity space will offering multiple seating areas, game tables and a large outdoor movie screen for films and sporting events, with views of the Empire State Building, NoMad, Hudson Yards and Bryant Park. Residents will also benefit from a state-of-the-art security system, doorman and three elevators ensuring minimal wait times and maximum convenience. Additional amenities will include a dedicated pet wash station, bike and storage bins and a laundry facility with commercial-grade washers and dryers for oversized items.
“Midtown South is on the cusp of an incredible transformation, much like we saw in the Financial District, but with its own unique energy,” added Heiberger. “The neighborhood has it all – great energy, excellent transit access, and top companies like Amazon and Salesforce anchored here – yet it lacks quality housing.”
The building is situated just three blocks south of Bryant Park and two blocks north of NoMad. Prime retail opportunities are also available at its base.
The developers were represented by Ben Schlegel of Ariel Property Advisors on the debt, lender Allegiant was represented by Richard Stanton and the seller was represented by the Colliers team of Zach Redding and Matt Mastrocola. The project was designed by Ismael Leyva Architects, Archstone is the general contractor and project management services are being provided by L&L.
