WeWork Building in NYC to Become Condos

In a notable shift in New York City's real estate landscape, the 20-story office tower at 419 Park Ave. South is poised for transformation into residential condominiums. This marks the first office-to-condo conversion in Midtown South since the onset of the coronavirus pandemic, as reported by Crain’s. The building, which spans 200,000 square feet, was previously a significant site for WeWork, which vacated over 60,000 square feet during its recent bankruptcy proceedings. The property has been sold by Walter & Samuels to the Elad Group for approximately $72 million. Walter & Samuels had owned the building, constructed in 1927, since 1978. The Elad Group plans to convert the space into around 100 market-rate condos by 2026, benefiting from a zoning change that allows the project to proceed without city approval. Additionally, most of the building's remaining leases, which currently see the property only 40% occupied, are set to expire by 2027. The trend of repurposing underutilized office spaces into residential units has gained traction as the pandemic has significantly impacted the commercial real estate market. However, the long-term viability of such conversions remains uncertain. A key advantage for the 419 Park Ave. South project is its stunning views, which played a crucial role in Elad's decision to acquire the property, according to the firm’s COO, Alex Olsen.