Mayor Adams, Governor Hochul Announce Office-to-Housing Transformation at 5 Times Square to Create up to 1,250 Homes, Including 313 Affordable Units

May 22, 2025

Redevelopment Will Reimagine Nearly 1 Million Square Feet of  
Underutilized Office Space as Mixed-Income Housing in Midtown Manhattan 

Project Will Utilize Mayor Adams’ Office Conversion Accelerator, 
Take Advantage of New Tools Adams Administration Won in Albany to Build More Housing 

5 Times Square Transformation Advances ‘New’ New York Action Plan to Support Housing and  
Transit-Oriented Development Goals in Manhattan's Central Business District, Help Fulfill Mayor Adams’
“Manhattan Plan” to Build 100,000 New Homes Across Borough Over Next Decade  

NEW YORK – New York City Mayor Eric Adams and New York Governor Kathy Hochul today announced that the Empire State Development (ESD) Board of Directors has approved an amendment to the 42nd Street Development General Project Plan to enable the conversion of underutilized office space at 5 Times Square into vibrant mixed-use housing that will create 1,250 new homes, including hundreds of affordable homes. The transformation of the contemporary office building — originally constructed in 2002 as headquarters for Ernst & Young, which departed the building in 2022 — will create up to 1,250 new rental units, including approximately 313 permanently affordable homes for New Yorkers earning up to 80 percent of the area median income. The project will participate in the Adams’ administration Office Conversion Accelerator and is made possible by policies advocated for and won by Mayor Adams in Albany, and enacted by Governor Hochul and the New York state Legislature, including the removal of the 12 “floor-to-area ratio” (FAR) residential cap — which had previously limited housing density in New York City — as well as the new 467-m tax incentive program — which incentives the conversion of office space into housing. This transformation also highlights the continued New York City and New York state partnership in addressing the housing crisis, with the New York City Economic Development Corporation (NYCEDC) helping to facilitate the redevelopment of city-owned assets like ESD’s new 5 Times Square project for the creation of new housing units. 

“Confronting a decades-long housing crisis requires creating new housing in every neighborhood at an accelerated pace — even here at the ‘Crossroad of the World’ in Times Square,” said Mayor Adams. “The transformation of 5 Times Square from an underutilized office building into 1,250 new homes capitalizes on hard-fought Adams and Hochul administration victories while fulfilling my plan to build 100,000 new homes in Manhattan over the next decade. Thank you, Governor Hochul, for your continued partnership in delivering the affordable housing New Yorkers need and for proving, once again, what can be accomplished when the city and state work together towards a common goal.” 

“We took bold action to unlock major office-to-housing conversions in New York City, and transforming 5 Times Square from underused offices into 1,250 new homes — including over 300 permanently affordable apartments — is a prime example of how we’re getting it done,” said Governor Hochul. “As I’ve made clear, the only way to address our housing crisis is to build more of the homes New Yorkers need — and I’ll never stop working to make that a reality.” 

“5 Times Square is a game-changer for Times Square and Midtown, paving the way for the future of urban growth,” said Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión, Jr. “By converting underutilized office space into over a thousand new homes, including hundreds of affordable units, we’re reimagining central business districts as vibrant, mixed-use communities that foster both residential life and economic opportunity.” 

“The transformation of nearly 1 million square feet of office space at 5 Times Square to mixed-income housing is yet another way our city-state partnership is working to deliver for New Yorkers,” said NYCEDC President and CEO Andrew Kimball. “This project — one of the largest office-to-housing conversions in the New York City's history — will address the immediate, critical need for more housing, while leveraging iconic, city-owned property as a place not just to do business, but as a 24/7 live, work, and play destination.” 

“The reimagining of 5 Times Square represents a transformative approach to New York's housing and economic challenges,” said Hope Knight, president, CEO, and commissioner, Empire State Development President. “By converting nearly 1 million square feet of office space into homes — with 25 percent permanently affordable — we're advancing our strategy to revitalize central business districts and create truly mixed-income communities. This project harnesses Times Square's unmatched transit connections and commercial energy while addressing our critical housing needs, building upon our ongoing efforts to adapt underutilized commercial spaces for residential use in high-opportunity areas.” 

5 Times Square — located at the crossroads of New York City’s transit network on Seventh Avenue between West 41st and West 42nd Streets — will repurpose approximately 917,745 square feet of office space while preserving 37,311 square feet of retail. The project will create roughly 1,250 new homes — a diverse mix of 1,050 studios and 200 one-bedroom units — with equal access to building amenities for all residents. The conversion addresses the office building’s high vacancy rate of 77 percent, transforming an underutilized property into much-needed housing. Construction is anticipated to begin by the end of 2025, with the first phase expected to be completed in 2027, creating approximately 1,400 construction jobs and 830 direct and indirect permanent jobs. 

Additionally, 5 Times Square is participating in Mayor Adams’ Office Conversion Accelerator program that assists the adaptive reuse of vacant office buildings in planning and construction approvals. The program facilitates communication between developers and agencies such as NYCEDC and the New York City Department of Housing Preservation and Development, which will administer the 467-m program. 

5 Times Square serves as a key example of the 'New' New York Action Plan — convened by Mayor Adams and Governor Hochul in December 2022 — that brought together a diverse panel of civic leaders and industry experts who delivered a set of 40 proposals intended to serve as a roadmap for the city’s future and make New York City an even better place to live and work. The recommendations center around how the city and state could partner with each other and across sectors to reimagine a “new” New York that propels the city and region forward for its next chapter of growth. 

Since launching the action plan, both New York City and New York state have enacted many of these proposals, including the Adams administration’s passage of “City of Yes for Housing Opportunity” to enable the creation of 82,000 new homes over the next 15 years — including through the conversion of vacant office space to housing — and invest $5 billion in critical housing and infrastructure upgrades, including $4 billion in city capital and $1 billion from the state. 

The project’s location at Seventh Avenue between West 41st and West 42nd Streets offers unparalleled access to 12 subway lines and regional transit connections, exemplifying Mayor Adams and Governor Hochul’s commitment to transit-oriented development that reduces car dependency and promotes sustainable urban living. The conversion will maintain Times Square’s iconic character through street-level retail and building signage while creating a true mixed-income community in Manhattan’s central business district. 

The 5 Times Square project represents an important advancement in New York’s approach to solving its housing crisis. With its original construction at 33.35 FAR — nearly three times the previous residential cap — the building showcases how recent policy changes can significantly impact housing creation.  

Combining the removal of the FAR cap with 467-m tax incentives enables converting high-density office buildings into residential use, bringing more affordable housing to prime locations. As part of a growing trend in reimagining New York City’s business districts, projects like 5 Times Square have the potential to create thousands of new homes in high-opportunity areas. Both Mayor Adams and Governor Hochul’s innovative policies are transforming underutilized office space into vibrant, mixed-income communities with direct access to jobs, transit, and amenities across the city and state. 

Proposals like 5 Time Square that take advantage of new tools will be crucial to realizing Mayor Adams’ “Manhattan Plan” — first announced earlier this year in his fourth State of the City address — that will add 100,000 new homes to the borough over the next decade. Additionally, Mayor Adams’ Midtown South Mixed-Use Plan would map new, higher-density zoning districts across 42 Manhattan blocks where housing today is largely not permitted, creating around 9,700 homes — including up to 2,800 of them income-restricted and permanently affordable — in Midtown and helping fulfill Mayor Adams’ Manhattan Plan goals.  

Since entering office, Mayor Adams has made historic investments toward creating affordable housing and ensuring more New Yorkers have a place to call home. The New York City Department of City Planning is advancing several robust neighborhood plans that, if adopted, would deliver more than 40,000 units over the next 15 years, including plans in Midtown South in Manhattan, and both Jamaica and Long Island City in Queens. Earlier this month, the New York City Council Land Use and Zoning Committees unanimously voted in favor of the Atlantic Avenue Mixed-Use Plan, while, last year, the City Council approved the Bronx-Metro North Station Area Plan, which will create approximately 7,000 homes and 10,000 permanent jobs in the East Bronx. Altogether, between the City of Yes for Housing Opportunity and neighborhood rezonings, the Adams administration is poised to open the door to more than 130,000 new homes over the next 15 years — representing more housing created in less than four years under the Adams administration than the 20 years under the two previous mayoral administrations combined. 

Moreover, last December, Mayor Adams celebrated the passage of City of Yes for Housing Opportunity, the most pro-housing proposal in city history that will build 80,000 new homes over 15 years. Last month, Mayor Adams announced that New York City will invest $24.7 billion in housing as part of its 10-Year Capital Strategy — including $1 billion as part of City of Yes — as well as make new investments to create and preserve nearly 6,000 units of supportive housing, renovate thousands of New York City Housing Authority units, provide legal services for tenants, and more. Mayor Adams celebrated back-to-back record breaking fiscal years, as well as back-to-back calendar years, in both creating and connecting New Yorkers to affordable housing. Last spring, the city celebrated the largest 100 percent affordable housing project in 40 years with the Willets Point transformation.   

Further, the Adams administration is using every tool available to address the city's housing crisis. Mayor Adams announced multiple new tools, including a $4 million state grant, to help New York City homeowners create accessory dwelling units that will not only help older adults afford to remain in the communities they call home but also help build generational wealth. 

In addition to creating more housing opportunities, the Adams administration is actively working to strengthen tenant protections and support homeowners. The Partners in Preservation Program was expanded citywide in 2024 through an $11 million investment in local organizations to support tenant organizing and combat harassment in rent-regulated housing. The Homeowner Help Desk, a trusted one-stop shop for low-income homeowners to receive financial and legal counseling from local organizations, was also expanded citywide in 2024 with a $9.85 million funding commitment. 

Finally, Mayor Adams and members of his administration successfully advocated for new tools in the 2024 New York state budget that will spur the creation of urgently needed housing. These tools include a new tax incentive for multifamily rental construction, a tax incentive program to encourage office conversions to create more affordable units, lifting the arbitrary “floor-to-area ratio” cap that held back affordable housing production in certain high-demand areas of the city, and the ability to create a pilot program to legalize and make safe basement apartments.   
    

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