Office-to-Residential Conversion in DUMBO

Williamsburg-based developer has embarked on an ambitious project to convert an office building at 175 Pearl Street into a residential complex. This project is part of a growing trend in urban redevelopment, transforming underutilized office spaces to meet the increasing demand for housing.

175 Pearl Street was recently acquired for $66.5 million, a significant reduction from the $102.9 million paid in 2017. The new development will span 230,000 square feet and include approximately 240 housing units, potentially offered as either luxury rentals or condos.

A key financial incentive aiding this conversion is the state tax incentive known as 467-M , which exempts developers from local property taxes to promote office-to-residential conversions. This project is classified as "as of right," meaning it does not require rezoning, streamlining the approval process and accelerating the project's timeline.

The conversion of 175 Pearl Street is indicative of a broader trend driven by the increased prevalence of remote work, which has reduced the demand for traditional office spaces. At the same time, the need for urban housing continues to grow. The new residential development will likely attract a diverse demographic, including young professionals and families, due to its proximity to amenities and public transportation in Downtown Brooklyn.

The office-to-residential conversion at 175 Pearl Street is a significant development for Downtown Brooklyn. It aligns with urban redevelopment trends and addresses the evolving needs of the city’s residents. By leveraging financial incentives and strategic acquisitions, the project is poised to deliver a modern residential development that will contribute to the area's dynamic growth.

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