25 Water Street: The Largest Office-to-Residential Conversion in U.S. History

A 1.1 Million Sq Ft Makeover?

Yes.

One building.1,320 homes.

$787 million.

This is the story of 25 Water Street in Manhattan.

What was once a fortress-like office block in NYC’s Financial District has become a mixed-income residential megalith—rebranded as “SoMA.”

It’s luxury.

It’s affordable.

And it’s a case study in how cities can literally reimagine their skylines.

Interested in learning about the Office-To-Residential market as a whole? Read this article on the new BOOM for real estate investors.

Explained in 30 Seconds

25 Water Street is the largest office-to-residential conversion in U.S. history.

It transformed a 1.1 million sq ft office tower into a 76-story residential tower with 1,320 apartments, topped out in February 2024, and opened for leasing in early 2025.

It includes over 100,000 sq ft of luxury amenities, and 25% of its units are reserved for affordable housing through a lottery system.

What Makes 25 Water Street a Big Deal?

The Scale

• 1.1 million square feet gutted and redeveloped.

• Ten stories added on top of the original structure.

• Converted from a lifeless corporate cube into 1,320 vibrant homes.

The Price Tag

• $787 million was invested into the project.

• Funded via construction loans, equity investors, and strategic tax incentives.

The Amenities

• Indoor and outdoor pools.

• Game lounge and gym.

• Pickleball courts and a luxury spa.

• Over 100,000 sq ft of space dedicated to keeping tenants impressed.

The Affordable Housing Component

• 330 units (25%) are income-restricted.

• Available via New York’s housing lottery.

• Studios start at $932/month.

• Three-bedrooms cap around $3,286/month.

• Available to tenants earning 40%–90% of AMI (6sqft).

Real-World Conversion: SoMA at 25 Water

Let’s walk it out.

The developers—Metro Loft, GFP Real Estate, and Rockwood Capital—began by gutting the former office building, located in Manhattan’s Financial District.

They added new floors, retrofitted interiors, and completely transformed the structure into housing—not just for luxury renters, but for a wide range of income levels.

They used New York’s 467-m tax abatement program, which encourages office-to-resi conversions by easing the tax burden for up to 25 years.

They did it fast.

From structural topping in Feb 2024 to leasing within a year, the project became a real-time blueprint for other cities staring down vacant towers.

If you’re wondering how this differs from real estate fads like virtual land speculation, you’re not alone. It’s far more real than buying property in Decentraland.

What Can Other Cities Learn From This?

1. Conversions Require Scale + Vision

You can’t turn a mid-rise into a 1,000-unit community overnight.

It takes structural upgrades, and an eye for future market trends.

2. Luxury Amenities Are the New Norm

Even affordable units sit atop a full spa, fitness facility, and rooftop pools.

To compete in 2025, developers must design experiences, not just units.

3. Incentives Work

The 467-m program helped make this pencil out.

Want to do this in L.A.? Start by understanding who has jurisdiction.

4. Affordability Must Be Front and Center

25% of 25 Water Street’s units are set aside for lower-income households.

That’s the only way to get public and political support in today’s climate.

Ready to Build Something Big?

Adaptive reuse is no longer a “maybe.”

It’s a must.

And while 25 Water was a monster project, you don’t need 76 stories to make an impact.

If you're exploring a project in L.A. or beyond—whether it’s zoning, incentives, or feasibility—reach out to us for real-world guidance, not just theoretical fluff.

Let’s make empty buildings useful again.

Thank You,

Alessia Moretti