Amid the COVID-19 pandemic, Pfizer was one of the few pharmaceutical companies that stepped up to the plate and completed an effective COVID-19 vaccine. As one of the most dominant leading biopharmaceutical companies globally, it makes perfect sense that Pfizer would be the home of such a life-saving innovation. For over 175 years, Pfizer has remained a vital part of the American healthcare system. Now, in this new post-COVID world in which the essence of the American workforce is being heavily reconsidered, Pfizer is embracing change and helping to provide housing in the heart of New York City.
Pfizer’s former Midtown headquarters is slated to become New York City’s largest office-to-residential conversion so far. With the vacant two-building complex at 219 and 235 East 42nd Street set to become a 1,500-unit rental property, Pfizer is making history once more. Metro Loft Developers, the team behind other gargantuan conversion projects, such as 55 Broad Street in the Financial District, is handling the conversion.
The two-building property measures 973,000 square feet, making the location perfect for a residential conversion. Another boon to the conversion is the fact that this location has unused air rights. This means that Metro Loft and partner David Werner Real Estate will be able to add floors throughout the conversion as well.
As a result, Metro Loft and Werner plan to build over 1,500 residences. These will range from studios to three-bedrooms and beyond, with many different options being considered. In conjunction with this, Nathan Berman, chief executive of project lead at Metro Loft, said that leasing is currently slated for 2026, and move-ins are tentatively to be set for 2027.
While that may sound relatively soon, many alterations are still needed to convert the building into apartments that are up-to-code. For example, right now, in accordance with office building standards, none of the windows are open. However, housing codes demand that residents have access to at least one opening window, meaning that each one will have to be individually modified. In accordance with this, developers plan on replacing all 2,000 windows over the course of the next year.
In total, the conversion is expected to cost what Berman refers to as “hundreds of millions of dollars,” with the goal being to “not hit $1 billion.” In accordance with modern-day conversion guidelines, buildings whose construction was completed prior to 1961 are eligible for residential conversion, and this spot meets the criteria.
In 2018, Pfizer sold 235 East 42nd Street to Alexandra Real Estate Equities and Werner for $228 million and sold 219 East 42nd Street to the developers for $142 million. Now, Metro Loft and Werner are actively working toward buying out Alexandria’s stake in the project altogether.
