Welcome to Issue #34 of The Rubin Report: The Pulse of the NYC Development Market.

Wow. 2,603 subscribers: 2,128 subscribed via LinkedIn Newsletters and 475 subscribed via email directly. So grateful for your readership! Let me know what you would like to see in future issues.

In this issue: We take a closer look at the owners and buildings driving Manhattan’s commercial-to-residential conversions. (Nearly 10,000 New Dwelling Units Created in 24 projects alone!), A snapshot of NYC construction costs, and todays land lending landscape. We also will take a deep dive in the City Charter Revisions up for vote in NYC on Nov 4, 2025.

Bonus: Since we are the only firm in NYC that solely focuses on development sites with a team of in-house architects, we thought it made sense to create our own (very useful) Zoning Handbook! If you would like a hard copy, please reach out to me and I will mail you a free one. (or you can visit our office in Midtown at 275 Madison Avenue, 20th Floor & pick one up!)

Also:

Mark Your Calendar: REBNY Development Committee Hosts MaryAnne Gilmartin (Nov 13, 5:30–7:00 PM)

As Co-Chairman of the REBNY Development Committee, I’m proud to announce that on Thursday, November 13, 2025, from 5:30pm to 7:00pm, we’ll host a fireside chat with MaryAnne Gilmartin, Founder and Chief Executive Officer of MAG Partners, interviewed by my fellow co-chair, Bob Knakal of BKREA, at 437 Madison Avenue in the Oasis on the 14th Floor of Sage Realty’s building; MAG Partners, a WBE-certified development company founded in 2018, has a $1B New York pipeline including Ruby at 243 W. 28th Street, Mabel at 335 Eighth Avenue, and Anagram Turtle Bay at 300 East 50th Street.

This is our sixth event for this important committee, following conversations with other prominent developers Miki Naftali, Kenneth Horn, Victor Sigoura, Sergey Rybak, and Matthew Adell, and we can’t wait to hear MaryAnne’s story, how she got started, her views on the market, and what’s next. Stay tuned for the official invite!!!

P.S.: New Yorkers, Tuesday November 4, 2025 is the NYC Mayoral Election. Polls are open from 6am to 9pm. (2025 General Election Early Voting: October 25th through November 2nd)

Make sure to vote. Your vote counts.

In this issue

• Commercial to Residential Conversions
• NYC Construction Costs Snapshot
• Charter Revisions on the Ballot: What’s at Stake for Affordable Housing Production
• The Land Lending Landscape
• Get a Free Hard Copy of the Development Site Advisors® Zoning Handbook: City of Yes Edition, Volume 1!

Commercial to Residential Conversions

Below we look at 24 commercial to residential conversions across Manhattan. These conversions account for a total of 9,385 New Dwelling Units! Let’s take a closer look at each:

25 Water Street, Financial District

Vertical enlargement and conversion to residential use of existing 321-ft-tall, 22-story building to 427-ft-tall, 33-Story Building

Total Zoning Floor Area: 904,868.34 ZFA

Total Dwelling Units Created: 1,320 Units

Owner: GFP

229 East 42nd Street, Turtle Bay

Conversion of existing commercial office building to residential from a 371 ft-tall, 33-Story office building to a 427-ft-tall, 37-Story Building

Total Zoning Floor Area: 650,448 ZFA

Total Dwelling Units Created: 927 Units

Owner: David Werner Real Estate & Metro Loft

219 East 42nd Street, Turtle Bay

Conversion of existing 10-Story, 142-ft-tall, commercial office building to a 29-Story, 348-ft-tall, mixed-use building

Total Zoning Floor Area: 465,792 ZFA

Total Dwelling Units Created: 536 Units

Owner: David Werner Real Estate & Metro Loft

592 7th Avenue aka 5 Times Sq. - Times Square

Alteration and conversion of existing commercial building to residential

Total Zoning Floor Area: 907,560 ZFA

Total Dwelling Units Created: 927 Units

Owner: RXR

212 Broadway, Financial District

Alteration and conversion of existing 31-Story, 386-ft-tall, commercial building to 32-Story, 430-ft-tall, residential building

Total Zoning Floor Area: 638,404 ZFA

Total Dwelling Units Created: 784 Units

Owner: GFP

740 3rd Avenue, Turtle Bay

Filing to convert existing 34 high-rise office building to a mixed used residential building

Total Zoning Floor Area: 1,292,004 ZFA

Total Dwelling Units Created: 680 Units

Owner: SL Green Realty Corp

1 Gouverneur Lane aka 77 Water Street, Financial District

Filing to convert existing 26-story, 373-ft-tall office building to a mixed used 33-Story, 429 ft-tall, residential building

Total Zoning Floor Area: 520,049 ZFA

Total Dwelling Units Created: 647 Units

Owner: Vanbarton Group

110 Maiden Lane, Financial District

Filing to convert existing 38-story office building to a mixed use residential building

Total Zoning Floor Area: 916,409 ZFA

Total Dwelling Units Created: 500 Units

Owner: Bushburg Builders

675 Third Avenue, Turtle Bay

Conversion of existing 31-Story, 379-ft-tall, commercial office building to a 35-story, 422-ft-tall, residential building.

Total Zoning Floor Area: 321,437 ZFA

Total Dwelling Units Created: 464 Units

Owner: David Werner Real Estate Investments & Metro Loft

1730 Broadway, Times Square

Conversion of existing commercial office building to a mixed-use residential building.

Total Zoning Floor Area: 1,006,063 ZFA

Total Dwelling Units Created: 424 Units

Owner: Yellowstone Real Estate Investments

1005 1st Avenue, Sutton Place

Conversion of existing 20-Story, 283-ft-tall, office building to a 27-Story, 324-ft-tall, residential building.

Total Zoning Floor Area: 351,975 ZFA

Total Dwelling Units Created: 417 Units

Owner: Vanbarton Group

845 3rd Avenue, Turtle Bay

Conversion of existing office building to a residential building.

Total Zoning Floor Area: 317,217 ZFA

Total Dwelling Units Created: 411 Units

Owner: Rudin

36 Exchange Place, Financial District

Conversion of existing office building to a residential building.

Total Zoning Floor Area: 584,888 ZFA

Total Dwelling Units Created: 382 Units

Owner: GFP

133 East 40th Street aka 355 Lexington Avenue, Murray Hill

Conversion of existing 22-Story, 241-ft-tall office building to a 26-Story, 278-ft-tall, residential building.

Total Zoning Floor Area: 226,902 ZFA

Total Dwelling Units Created: 297 Units

Owner: Rudin

830 3rd Avenue, Turtle Bay

Conversion of existing office building to a mixed use residential building.

Total Zoning Floor Area: 124,143 ZFA

Total Dwelling Units Created: 188 Units

Owner: Namdar Realty

160 West 74th Street, Upper West Side

Conversion of existing school building to a dormitory for transitional housing for formerly homeless single adults.

Total Zoning Floor Area: 19,711 ZFA

Total Dwelling Units Created: 146 Units

Owner: UWS Partners | Volunteers of America - GNY

442 & 444 East 119th Street, East Harlem

Conversion of an existing house of worship into a total of 105 multiple dwelling units

Total Zoning Floor Area: 39,977 ZFA

Total Dwelling Units Created: 105 Units

Owner: AFS Systems

115 7th Avenue, Chelsea

Conversion of existing 7-story, 85-ft-tall, commercial building to a 12-story, 145-ft-tall, mixed use building.

Total Zoning Floor Area: 49,702 ZFA

Total Dwelling Units Created: 52 Units

Owner: Chelsea 115 LLC

53 Catherine Street, Two Bridges

Conversion of existing commercial building to a residential building.

Total Zoning Floor Area: 39,994 ZFA

Total Dwelling Units Created: 38 Units

Owner: Rivington Company

171 5th Avenue, Flatiron

Conversion of existing commercial building to a residential building.

Total Zoning Floor Area: 176,558 ZFA

Total Dwelling Units Created: 38 Units

Owner: The Brodsky Organization

298 Bowery, Noho

Conversion of existing 4-story commercial building to a 12-story mixed-use building.

Total Zoning Floor Area: 45,926 ZFA

Total Dwelling Units Created: 31 Units

Owner: Paul Yam

7 West 66th Street, Lincoln Center

Conversion of existing 4-story commercial building to a 12-story mixed-use building.

Total Zoning Floor Area: 45,926 ZFA

Total Dwelling Units Created: 31 Units

Owner: Paul Yam

74 West 126th Street, Central Harlem

Conversion of existing house of worship into a 20 unit apartment building with ground floor community facility space.

Total Zoning Floor Area: 8,178 ZFA

Total Dwelling Units Created: 20 Units

Owner: Mayer Leifer

17 East 47th Street, Midtown

Proposed conversion of existing 8-story commercial building to a mixed-use 14-story building.

Total Zoning Floor Area: 25,808 ZFA

Total Dwelling Units Created: 20 Units

Owner: Simon Lichtenstein

NYC Construction Costs Snapshot

A construction costs report by Turner & Townsend shows New York City as the most expensive city globally to build in for the 3rd consecutive year, with average construction costs coming in at $533.61/SF!

A Construction Costs Insights Report from Gordian’s RSMeans for Q3 2025 shows that:

“The big headline of the Q3 report is that the industry is in reaction mode as costs continue to rise due to a confluence of factors, including changes in the geopolitical scene.

Pricing is on the rise for a few core materials. Copper electric wire costs jumped 12% from Q2 to Q3, conduit prices are up 6.8% over that same span and lumber costs rose 6.42% during the quarter. These individual component increases have resulted in higher prices for electrical gear, HVAC equipment and curtain wall assemblies, to name a few items. Labor costs continue to increase as well, up 2-3% annually since 2021.

This trend shows no signs of slowing down. Rising costs are causing schedules to extend, projects to be postponed and teams to change their normal planning operations.”

RLB just posted their Q3 2025 Quarterly Construction Cost Report and here is what it says about costs in NYC:

NYC INDACTIVE CONSTRUCTION COSTS PER BUILDING TYPE

Residential (Multi-Family) - $250/sf to $490/sf

Residential (Single-Family) - $355/sf to $715/sf

Prime Office: $415/sf to $960/sf

Secondary Office: $240/sf to $595/sf

Retail Center/Strip: $355/sf to $755/sf

5-Star Hotel: $515/sf to $775/sf

3-Star Hotel: $375/sf to $515/sf

Hospital: $640/sf to $975/sf

Warehouse: $145/sf to $240/sf

School - $550/sf to $840/sf

Parking (Basement): $170/sf to $250/sf

Charter Revisions on the Ballot: What’s at Stake for Housing Production

NYC Charter Revision: Streamlining Land Use for Housing

Why the proposed changes? Simply put, rezoning simply take too long and are shot down by single individuals. We have 103,391 homeless people in shelters in NYC and 35,405 of them are children. (There are likely over 350,000 homeless in NYC source & source) We have an affordable housing crisis. New York City’s housing growth is lopsided. From 2010 to 2024, a small share of Community Districts delivered a big share of new homes, while many districts added very little. Upzonings powered a significant slice of production, yet ULURP slows projects and raises risk. Three Charter questions on the ballot on November 4th: Questions 2, 3, and 4, would target delay and uneven growth by creating faster paths for affordable housing and modest land-use actions, and by adding a citywide and borough-level backstop when district politics stall qualifying projects.

Question 2: Accelerating Affordable Housing in Low-Output Areas

Two changes:

• BSA Fast Track Zoning Action for HDFCs. HDFCs building publicly financed affordable housing could seek use, bulk, or parking relief directly from the Board of Standards and Appeals in residential districts without full ULURP. Required findings: necessity with HPD input, and no change to essential neighborhood character. Traditional variance tests like “unique physical condition” and “minimum variance” would not apply under this track.
• Affordable Housing Fast Track for MIH Rezonings. In 12 Community Districts with the lowest recent share of affordable housing, MIH-triggering rezonings would run on a shorter clock: Community Board and Borough President combined review, a tighter City Planning Commission timeline, and no City Council vote. DCP, with HPD, would identify the 12 districts every five years starting October 2026.

Question 3: ELURP for Quicker Approvals (120-Days)

The Expedited Land Use Review Procedure (ELURP) consolidates early reviews, shortens CPC timelines, and removes Council review unless state law requires it. Eligible actions include:

• Modest map changes in R6 and above zoning districts that raise residential FAR by up to 30 percent.
• Map changes in R1 to R5 up to another low-density district. Typical height about 45 feet, max FAR up to 2.
• City dispositions to HDFCs for affordable housing, with a short Council look if state law requires it.
• HPD acquisitions that are restricted to affordable housing.
• DCAS SAIL dispositions of tiny slivers, accessways, and interior lots to adjacent owners.
• City Map changes needed for government-sponsored affordable housing.
• Resiliency and climate infrastructure tied to housing, including street raising, open space, solar, and small or irregular-site actions.

Question 4: An Appeals Board for Affordable Housing ULURPs

Creates a three-member Affordable Housing Appeals Board — the Mayor, the City Council Speaker, and the Borough President where the project sits — to review Council disapprovals or modifications of one-borough affordable-housing ULURP applications. Two votes can reverse the Council decision. This replaces the current Mayoral veto and Council override step.

Bottom line

If approved, these measures add targeted fast lanes for affordable housing, streamline modest rezonings and public-purpose work, and inject a broader mandate when local vetoes block qualifying projects. The BSA track, 120-Days, is notably shorter than ULURP and could materially reduce entitlement risk for eligible HDFC deals.

Make sure to vote on 11/4.

You can read more about the proposals broken down by the NYU Furman Center here.

The Land Lending Landscape

SOFR, The Secured Overnight Financing Rate today it is at 4.19%. This is important because construction loans are typically based off of 400+ points above SOFR. For example, a construction loan today at say 500 over SOFR would equate to 9.19%.

The Prime Rate has dropped to 7.25%

The 10-Year Treasury Rate is at 4.024%, the 5-Year is at 3.616% and the 2-Year is at 3.499% Today a 30-Year Fixed Mortgage Rate Average sits at 6.27%

Development Site Advisors® Zoning Handbook | City of Yes Edition, Vol. 1

If you would like a FREE Hard Copy of our own Zoning Handbook, please reach out to me directly or schedule a time to stop by the office to pick up your copy in person! I would love to meet.