Several years after the pandemic, fully remote work has largely faded, though hybrid schedules remain common across many industries. As a result, the office-heavy corridors of Midtown East are in transition. While demand for Class A office space has rebounded, many Class B and C buildings face uncertain futures, prompting a growing wave of office-to-residential conversions across the district.
To encourage these transformations, New York State approved the 467-m tax incentive program in 2024, offering tax exemptions of up to 35 years for projects that convert non-residential space into housing and include required affordable units. Marc Holliday, chairman and CEO of SL Green, told The Real Deall that he expects 20 to 40 million square feet of office space could ultimately convert to residential under the program.
To encourage these transformations, New York State approved the 467-m tax incentive program in 2024, offering tax exemptions of up to 35 years for projects that convert non-residential space into housing and include required affordable units. Marc Holliday, chairman and CEO of SL Green, told The Real Deall that he expects 20 to 40 million square feet of office space could ultimately convert to residential under the program.
In this article:
"This isn’t wait-and-see…you’ve gotta get going now" – Marc Holliday, Chairman & CEO, SL Green
Meanwhile, the nearby residential enclave of Murray Hill—defined here as Fifth Avenue to the East River between East 34th and 42nd Streets—continues to draw buyers and renters for its central location near Grand Central and Penn Station, quieter streets, and distinctive prewar architecture. Historic townhouse blocks remain beautifully preserved, while newer developments such as One United Nations Park, HOUSE39, and The Murray are the latest entrants in a long line of new mid-market buildings that have come online in recent years.
The streets of Murray Hill are about to look different in the wake of new projects (CityRealty)
Murray Hill average condo price per square foot (CityRealty) | https://www.cityrealty.com/nyc/murray-hill
Murray Hill (CityRealty)
These buildings, like their Murray Hill neighbors, are coveted for their easy access to the United Nations Headquarters, NYU Langone Medical Center, and Yeshiva College. They are also located in excellent proximity to the Morgan Library and Museum, Scandinavia House, and the new Korean Cultural Center a few blocks east of Korea Way. When people need to visit another part of the city, Grand Central Terminal offers a convenient, not to mention beautiful transportation hub.
Indeed, whatever happens with Midtown East office-to-residential conversions, Murray Hill is not sitting by; quite the opposite with several new projects in the works. One of the more memorable/controversial is perhaps Soloviev Group’s Freedom Plaza, which called for a subterranean casino run by Mohegan, a Museum of Democracy, a five-acre public park, two hotels, and two residential towers with 1,080 affordable units. But the bid was rejected, and Soloviev Group's new plans for the site are not known.
To the west, 175 Park Avenue, the Grand Hyatt Hotel next to Grand Central Terminal, is set to be redeveloped into a new 83-story, 2.9 million-square-foot tower with a new, 200-room Hyatt hotel, 10,000 square feet of retail space, and 2.5 million square feet of office space. The project is eligible for federal assistance because it also involves improving the public transit infrastructure underneath; but officials from the Department of Transportation have not yet signed off on the loan. Earlier this week, 175 Park Avenue developers RXR Realty and TF Cornerstone met with clients of JPMorgan for a "field trip" at the nearby One Vanderbilt, where they pitched institutional investors on the new tower.
In the meantime, several new condos and rentals are in the works for Murray Hill. We look at projects on the rise and great listings in the area below.
175 Park Avenue
Forthcoming Condo Developments
218 Madison Avenue
Developed by RYBAK Development | Design by IMC Architecture
10 stories | 26 units
Completion estimated for 2027
Developed by RYBAK Development | Design by IMC Architecture
10 stories | 26 units
Completion estimated for 2027
218 Madison Avenue | All renderings credit of RYBAK Development
RYBAK Development is expanding its Manhattan portfolio with a new boutique condominium at 218 Madison Avenue (23 East 36th Street) in Murray Hill, following successful projects such as 500 East 81st Street and 660 Lexington Avenue. Rising at the northwest corner of Madison Avenue and East 36th Street, the 11-story building will contain 25 residences, including a penthouse, and is scheduled for completion in late 2026. Designed by IMC Architecture, the project will feature a limestone façade with bronze-accented floor-to-ceiling windows and landscaped street frontage, with its primary entrance located on East 36th Street.
The development replaces a historically layered structure that once served as the residence of Archbishop John Hughes, New York’s first archbishop, and later housed Archbishop John McCloskey, the first American cardinal. According to Daytonian in Manhattan, during the 19th century, the mansion functioned as a planning center for the construction of St. Patrick’s Cathedral and hosted early discussions about expanding Catholic education in New York. Over time the building was heavily altered, serving variously as a club for “self-supporting women,” publishing offices, and small commercial spaces before ultimately losing much of its architectural significance. After acquiring the site in 2023 for $12 million, RYBAK demolished the structure and began construction on the new condominium.
218 Madison Avenue, July 2024 (CityRealty)
The upcoming residences will emphasize spacious layouts and refined materials, including chevron-pattern oak floors, marble finishes, fluted detailing, and custom millwork. Kitchens will feature integrated appliances, marble islands, and wood paneling, while select homes will include duplex layouts with sculptural staircases. Amenities are expected to include a fitness center, rooftop terrace, spa with cold plunge, sauna and steam room, study lounge, and a double-height lobby with stone and wood finishes. The building will also benefit from protected views over the Morgan Library & Museum across Madison Avenue and close proximity to Grand Central Terminal, Bryant Park, and Midtown’s commercial core.
218 Madison Avenue (early March 2025)
40 East 35th Street
Developed by Continuum Co. | Design by SLCE Architects
18 stories | 137 units
Completion estimated for 2027
Developed by Continuum Co. | Design by SLCE Architects
18 stories | 137 units
Completion estimated for 2027
Continuum Company has topped out construction on a new 18-story condominium at 40 East 35th Street that will deliver 137 residences to a midblock site between Park and Madison Avenues, a block south from The Morgan Museum and Library. Designed by SLCE Architects, the roughly 180,000-square-foot project will also include ground-floor commercial space, a residential courtyard, community facility space, and a 17-car parking garage. The development replaces several historic structures, including the Community Church of New York, a congregation dating to 1825 that hosted figures such as Pete Seeger, Nelson Mandela, and a famous debate between Malcolm X and Bayard Rustin The property was sold to Continuum in 2022 for approximately $66 million.
40 East 35th Street, July 2024 (CityRealty)
The superstructure is now full height, and the curtain wall is currently being installed, with prefabricated façade panels produced by Dextall and designed to meet strict energy performance targets while maintaining a refined architectural presence. Renderings show an understated design of vertical piers clad in porcelain panels. A series of shallow setbacks will create terrace opportunities for select residences.
Once complete in 2027, the building will introduce a sizable condominium offering to a quiet Midtown block within walking distance of Grand Central Terminal, Bryant Park, and Midtown’s office core. While surrounding buildings will limit far reaching views, residents will benefit from its proximity to transit, cultural institutions, and easy commutes. Sales are expected to launch later this year.
Once complete in 2027, the building will introduce a sizable condominium offering to a quiet Midtown block within walking distance of Grand Central Terminal, Bryant Park, and Midtown’s office core. While surrounding buildings will limit far reaching views, residents will benefit from its proximity to transit, cultural institutions, and easy commutes. Sales are expected to launch later this year.
Forthcoming Rental Developments
The Lotus, 251 East 39th Street
Developed by Brause Realty | Design by CetraRuddy
20 stories | 157 units
Completion estimated for 2025
Developed by Brause Realty | Design by CetraRuddy
20 stories | 157 units
Completion estimated for 2025
The Lotus (Brause Realty) | https://www.cityrealty.com/nyc/murray-hill/the-lotus-255-east-39th-street/5412
A new residential tower called The Lotus is opening at 255 East 39th Street, transforming a stretch of Second Avenue between East 39th and 40th Streets that was previously occupied by low-rise walk-ups. Developed by Brause Realty in partnership with Lonicera Partners and AECOM Tishman, the 20-story rental building will bring online 157 apartments late March 2026.
Zoning diagram (NYC Department of Buildings)
The Lotus as of March 2026
Designed by CetraRuddy, the project features a light-colored façade with near-full-height ribbon windows and a series of setbacks along the upper floors. The building will include 48 affordable units through the 421-a tax abatement program, with apartments designated for households earning 70% and 130% of Area Median Income. In keeping with its sustainability goals, The Lotus has been designed to meet Zone Green standards and will feature solar panels on the roof, fully electric HVAC systems and appliances, and environmentally conscious materials, including vegan finishes. The building’s envelope is also intended to reduce its carbon footprint and improve long-term energy efficiency.
Typical windowed kitchen at The Lotus | https://thelotusnyc.com/
Residents will enter through a 24-hour attended lobby with concierge service and have access to an extensive amenity package that includes a fitness center with yoga room, coworking lounge, game room, golf and multisport simulator, screening room, children’s playroom, and residents’ lounge. A landscaped rooftop terrace with grills and outdoor dining areas will offer city views. Leasing for the market-rate apartments has just launched, while the affordable housing lottery is accepting applications until the end of this month.
650 First Avenue
Developed by Lalezarian Properties | Design by Ismael Leyva
11 stories | 111 units
Completion estimated for 2025
Developed by Lalezarian Properties | Design by Ismael Leyva
11 stories | 111 units
Completion estimated for 2025
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Advertisement from the Kips Bay Brewing Co. that used to be housed at 650 First Avenue (Princeton International Properties)
650 First Avenue is a residential conversion of a historic Murray Hill building originally constructed in 1904 as the headquarters of the Kips Bay Brewing Company. After decades as commercial and medical office space, including housing NYU Langone Health’s internal medicine officesm the property was acquired by Lalezarian Properties for $33.5 million in 2023 and redeveloped into a mixed-use residential rental building. The project preserves the building’s seven-story prewar base while adding a four-story glass rooftop addition, bringing the structure to 11 stories and roughly 125 feet tall.
Designed by Ismael Leyva Architects, the redevelopment created 111 rentals, including a portion of mixed-income apartments offered through NYC’s housing lottery program. Residences feature modern finishes such as high ceilings, stone and wood flooring, stainless steel appliances, and in-unit washers and dryers. Amenities include a 24-hour attended lobby, fitness center, bicycle storage, resident lounges, and a rooftop deck with East River views, while the building’s location near NYU Langone Medical Center and the East River waterfront provides convenient access to transit, healthcare institutions, and Midtown offices.
Double-height living room at 650 First Avenue
Common roof deck
210 and 235 East 52nd Street
Developed by Metro Loft Management in partnership with David Werner | Designer TBD
33 stories | 1,500+ units
Completion estimated for 2027
Developed by Metro Loft Management in partnership with David Werner | Designer TBD
33 stories | 1,500+ units
Completion estimated for 2027
The former Pfizer headquarters at 219 and 229 East 42nd Street will become one of the largest office-to-residential conversions in New York City. Developers Metro Loft Development and David Werner Real Estate Investments, working with Gensler as design architect, plan to transform the nearly 1 million-square-foot complex into a mixed-use residential development with roughly 1,600 apartments across a 33-story stepped tower and an adjoining 10-story building. The project will involve a significant overhaul of the existing structures, including replacing thousands of windows and installing a new high-performance façade to meet residential building standards.
Once completed, the development will introduce a major new housing component to East Midtown, with residences expected to range from studios to three-bedroom apartments. Plans also call for amenities such as a rooftop pool, fitness center, and other shared spaces, helping reposition the formerly corporate complex as a full-time residential community. The project reflects a broader push to convert underused office buildings into housing and is expected to deliver new apartments to the market beginning in 2027, contributing to the ongoing transformation of Midtown into a more mixed-use, 24-hour neighborhood.
Once completed, the development will introduce a major new housing component to East Midtown, with residences expected to range from studios to three-bedroom apartments. Plans also call for amenities such as a rooftop pool, fitness center, and other shared spaces, helping reposition the formerly corporate complex as a full-time residential community. The project reflects a broader push to convert underused office buildings into housing and is expected to deliver new apartments to the market beginning in 2027, contributing to the ongoing transformation of Midtown into a more mixed-use, 24-hour neighborhood.
Pfizer buildings, summer 2024 (CityRealty)
The Dian, 162 East 36th Street
Developed by Gilar Realty | Design by Ismael Leyva
22 stories | 160 units
Completion estimated for 2027
Developed by Gilar Realty | Design by Ismael Leyva
22 stories | 160 units
Completion estimated for 2027
Rendering of The Dian at 162 East 36th Street (Gilar Realty)
Designed by Ismael Leyva, The Dian at 162 East 36th Street, is a 22-story boutique rental building that brings a refined Art Deco sensibility to Murray Hill. The ground-up property delivers a collection of thoughtfully designed studios, one-, and two-bedroom residences distinguished by warm materials and tailored interiors, including engineered white oak flooring, custom millwork, and detailed kitchens and baths. Many homes feature generous layouts with dedicated dining and work areas, while select residences include private outdoor space.
The building’s amenities are designed to evoke the atmosphere of a modern private club. Residents have access to a fitness center, cedar sauna, landscaped garden spaces, and top-floor lounges with coworking areas, as well as a rooftop terrace with skyline views. Located just moments from Grand Central Terminal and multiple transit lines, The Dian combines boutique-scale living with convenient access to Midtown’s offices, dining, and cultural destinations.
The building’s amenities are designed to evoke the atmosphere of a modern private club. Residents have access to a fitness center, cedar sauna, landscaped garden spaces, and top-floor lounges with coworking areas, as well as a rooftop terrace with skyline views. Located just moments from Grand Central Terminal and multiple transit lines, The Dian combines boutique-scale living with convenient access to Midtown’s offices, dining, and cultural destinations.
Construction progress as of March 2026 (CityRealty)
567 Third Avenue
Developed by Lalezarian Properties | Design by SLCE Architects
34 stories | 200 units
Completion estimated for 2029
Developed by Lalezarian Properties | Design by SLCE Architects
34 stories | 200 units
Completion estimated for 2029
Directly to the west of its project at 650 First Avenue (see above), Lalezarian Properties is at the helm of a new building planned for Third Avenue between East 37th and 38th Streets. Permits call for no more than five units per floor as well as cellar-level amenity space and ground-floor retail space.
According to an early report, this project will bring the most units to Murray Hill since 2019. However, it will be some time before it is delivered: Demolition has started on one of the low-rise buildings in the assemblage, and work has been slow.
According to an early report, this project will bring the most units to Murray Hill since 2019. However, it will be some time before it is delivered: Demolition has started on one of the low-rise buildings in the assemblage, and work has been slow.
567 Third Avenue (Corcoran Group)
Freedom Plaza
Developed by Soloviev Group | Design by Bjarke Ingels Group
50-60 stories | 1,080 units
Completion TBD
Developed by Soloviev Group | Design by Bjarke Ingels Group
50-60 stories | 1,080 units
Completion TBD
Rendering of Freedom Plaza (Negativ)
Since 2000, when it was still known as Solow Building Company, developer Soloviev Group has owned the 6.7-acre former site of a Con Edison substation between East 38th and 41st Streets east of First Avenue. Plans for a life science and biotechnology center were unveiled in July 2017, and art exhibition Field of Light at Freedom Plaza was recently on display, but the developer later thought bigger than that as it aimed for one of New York's casino licenses.
In February 2023, Soloviev Group revealed grand plans for the site with a partially subterranean casino operated by Mohegan as the cornerstone. Two residential towers were expected to contain a mix of studio to three-bedroom condos and rentals. Additional components were to include two hotel towers, public green space, new retail space, and a Museum of Freedom and Democracy that would include pieces of the Berlin Wall.
In the months that followed, plans for a giant Ferris wheel on the site were nixed, and the developer sought to sweeten the deal by promising that the residential component would include 513 permanently affordable units priced at an average of 80% or below the average median income. Later, they promised that all 1,080 of the planned housing units would be affordable. However, the plan was ultimately rejected in September 2025, and Soloviev Group's new plans for the site are not known.
In the months that followed, plans for a giant Ferris wheel on the site were nixed, and the developer sought to sweeten the deal by promising that the residential component would include 513 permanently affordable units priced at an average of 80% or below the average median income. Later, they promised that all 1,080 of the planned housing units would be affordable. However, the plan was ultimately rejected in September 2025, and Soloviev Group's new plans for the site are not known.
Field of Light on the Freedom Plaza site with the Long Island City skyline in the background (Ondel)
Featured new rental and condo listings
The Anthem, #2418 (City Sites New York)
Manhattan Place, #10A (Compass)
108 East 37th Street, #4A (Corcoran Group)
The Griffon, #2C (Corcoran Group)
Eastlight, #25B (Douglas Elliman Real Estate)
172 Madison, #11A (Corcoran Group)
Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
Would you like to tour any of these properties?
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