NYC Office Conversion Specialist

An office-to-residential conversion turns an underperforming or obsolete office building into rental apartments or condominiums. In Manhattan, that usually means Class B and C office buildings in prime locations where residential demand is stronger than office demand. Robert Khodadadian at Skyline Properties finds and brokers these conversion deals.

The 467-m tax abatement is a New York City program that provides property tax exemptions for up to 35 years for qualifying office-to-residential conversions. Buildings must be in eligible areas (primarily Lower Manhattan and Midtown), must start construction before the deadline, and may need an affordable housing component. For many developers, the abatement is what makes the project pencil.

The best conversion candidates usually have floor plates under 15,000 square feet for efficient apartment layouts, a good window line for natural light, pre-war or 1950s-1970s construction with solid bones, a location in a high-demand residential neighborhood, and weak performance as office space. Robert Khodadadian has written about this at length in NYREJ.

A typical office-to-residential conversion in Manhattan takes 18-36 months from acquisition to completion. That covers due diligence (2-3 months), design and permitting (6-12 months), construction (12-24 months), and lease-up or sales (3-6 months). The timeline depends on building size, complexity, and regulatory requirements.

Conversion costs typically range from $200-$400 per square foot depending on the scope of work. Major cost components include: structural modifications, new mechanical systems (HVAC, plumbing), electrical upgrades, interior buildout, and facade work. The 467-m tax abatement can offset significant portions of these costs over time.

Skyline Properties has closed over $317M in office conversion transactions, including the $135M sale of 6 East 43rd Street and the $105M sale of 101 Greenwich Street. Robert Khodadadian's off-market relationships turn up deals you won't see through traditional channels, and his command of the 467-m requirements helps buyers capture the full tax benefit.