Last summer, New York City’s landmark Flatiron Building was a hot commodity in the city’s sluggish commercial real estate market. After selling at auction for $190 million, the buyer defaulted on the down payment, paving the way for Jeffrey Gural of GFP Real Estate, a part owner in the building, to ultimately sign the check for its purchase. After the purchase was confirmed, word on the street was that Gural had been looking to convert the historic building into apartments, recognizing the city’s need for housing and waning desire for office space.
Fast forward to today, documents recently submitted to the New York City Department of City Planning shed more light on the building’s future sandwiched between Fifth Avenue, Broadway, and East 22nd Street. The document contains details for how the 22-story building could be converted into 60 residential units. And according to the document, the project tentatively “entails interior renovations and minor modification of the Flatiron Building.”
The Environmental Assessment Statement (EAS) states, when converted into residences, the Flatiron would comprise up to 60 residential units. Of its 22 stories, only the ground floor will stay open for commercial use, the upper levels will be converted to housing.
The assessment contends that a primary driver for the change in building use stems from the “current state of the commercial office market.” It cites a recent report from Avison Young that found, in Manhattan and Midtown South, where Flatiron is located, the total vacancy rates for commercial real estate was 19.6 percent and 21.1 percent, respectively, in Quarter 3 of 2023. The assessment continued by saying it is “unlikely” the entirety of the Flatiron Building’s vacant commercial office space would “be fully leased and occupied by 2026,” when the design and development team anticipates the residential conversion to be wrapped up.
Given the building’s status as a designated historic building in the city of New York, any work to the building’s limestone and terra-cotta facade requires approval from the Landmarks Preservation Commission. The entity is already on board with the conversion and has reviewed anticipated renovations. No “demolition, addition, or expansion” work will take place, however, according to the EAS documents. But “minor exterior work” will occur; this will include replacing windows and making alterations to the ground-floor door. The most notable interior renovations will be in the conversion from expansive office floors to smaller, more insular layouts that will comprise the apartment units, as well as updates to the mechanical equipment throughout.
Details have also emerged regarding the construction timeline. With approvals for the work on Flatiron anticipated by the end of this year, construction work will begin in early 2025 and the building will be “completed and operational by 2026.”
