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Apollo Plans 942 Apartments at 5 Times Square, Utilizing Tax Incentive

Jan 2, 2025, 01:12 PM

Apollo Global Management, in partnership with RXR and SL Green, has filed plans to convert the 39-story office building at 5 Times Square into a mixed-use development featuring 942 apartments. This project, one of the largest office-to-residential conversions in New York City, aims to address high office vacancy rates and utilize the recently passed 467-m tax incentive, which requires at least 25% of units to be designated as affordable housing. The building, currently 80% vacant, will retain office and retail spaces on certain floors. Streaming giant Roku, which signed a lease for 240,000 square feet in 2022, will remain in the building. The developers have secured a $1.3 billion loan modification and a $200 million equity infusion to fund the project, with financing provided by Morgan Stanley, AIG, and Apollo. Gensler, a leading architectural firm, has been chosen to design the conversion. This initiative reflects a broader trend of office-to-residential conversions in Manhattan, driven by changing market demands.