- TF Cornerstone has acquired Tower 57 at 135 E. 57th St., marking its first Manhattan office conversion in more than 20 years.
- The 430K SF property will be redeveloped into 350 mixed-income apartments using New York State’s new 467-m tax incentive program, which requires 25% affordable housing.
- The project benefits from the City of Yes rezoning, allowing newer Midtown office buildings to be converted into residential by-right, and must begin construction by June 2026 to secure a 90% tax abatement for 30 years.
TF Cornerstone is bringing housing — including affordable units — to one of New York City’s wealthiest corridors, reports Bisnow. The developer has secured a ground lease for Tower 57, a 32-story office building at 135 E. 57th St. It plans to convert the property into 350 apartments. The project will take advantage of the state’s 467-m tax incentive program and the City of Yes rezoning passed last year.
A Return To Conversions
This will be TF Cornerstone’s first office-to-residential conversion in Manhattan since 2000, and its first residential project in the borough since 2018. The building was designed by Kohn Pedersen Fox and developed by Cohen Brothers Realty Corp. in the late 1990s. It has struggled with high vacancy since the pandemic. This ultimately led to the termination of the previous ground lease.
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The Plan
The redevelopment will retain Tower 57’s curved façade while replacing all windows. Apartments will range from market-rate to affordable, with at least 25% reserved for renters earning below 80% of the area median income. Planned amenities include a golf simulator, pet spa, and a redesigned public plaza to make the corner more pedestrian-friendly.
Why It Works
Tower 57’s smaller floor plates and 12.5-foot ceilings make it more adaptable to residential layouts than many 1980s and ’90s office buildings. The location, on Billionaires’ Row, makes the affordable housing component especially rare in such a high-value area.
A Broader Wave
Office-to-residential conversions are surging in NYC. Notable projects include the transformation of 5 Times Square into 1,200 apartments. Another is the $720M redevelopment of Pfizer’s former headquarters into more than 1,600 units. This is the largest office-to-residential conversion in the nation.
What’s Next
TF Cornerstone aims to start construction before the June 2026 deadline to lock in the full 467-m tax benefits. While the project was acquired independently, the company’s $1B Alta Residential venture with Dune Real Estate Partners could still be involved later.
