Monday June 17, 2024
By the end of 2023, the vacancy rate for Manhattan office buildings reached 22.8% and is expected to persist through 2026. Enter the next buzzword in construction – commercial-to-residential conversions, a sometimes-challenging endeavor to repurpose underperforming commercial assets into quality housing that makes sense for future occupants and investors.
One Wall Street is an example of how residential conversions can succeed in one of the most expensive cities to reposition an existing building.
As the latest luxury development from Macklowe Properties, One Wall Street is among the largest-ever commercial-to-residential conversions in New York history. Located in Manhattan’s Financial District, the historic property now comprises 566 pristine condominiums and more than 100,000 square feet of amenities. The property also contains a multi-story Life Time Fitness club, French luxury department store Printemps, and a sprawling Whole Foods Marketplace, the only full-scale supermarket in the area.The journey to completion was a masterful collaboration between Macklowe Properties and FirstService Residential, a property management company whose New Development Group works behind the scenes to help developers bring their vision to life.
Before any construction broke ground, Harry Macklowe retained FirstService Residential’s New Development Group to help bring his vision to life.
The 50-story tower at One Wall Street was completed in 1931 and served as banking headquarters for the Irving Trust Company. Macklowe acquired the property in 2014 and engaged FirstService in 2016 for pre-development consulting including extensive design drawing reviews. The team was charged with reviewing all architectural plans to ensure the interior layout was conducive to how a luxury development needs to operate to support its residents, building staff, and commercial tenants.One Wall Street is adjacent to The New York Stock Exchange, a historic financial institution with some of the highest street-level security in Manhattan.
That means complicated access for residential move-ins, deliveries for anchor commercial tenants, postal workers, and building contractors.To simplify access for commercial deliveries and moving trucks, FirstService helped create multiple security checkpoints on the building’s ground floor and basement-level elevators. On top of security staff, all contractors and delivery workers are required to show state-issued identification and are issued temporary badges to access loading docks and specified areas of the building. Whole Foods was granted a dedicated loading dock and dock master to facilitate frequent, large-scale deliveries and reduce congestion.
For residential move-ins, FirstService Residential partnered with LIVunLtd to provide residents a white glove, hassle-free experience from day one.
One Wall Street’s proximity to the Stock Exchange and the World Trade Center complex made it difficult to secure adequate property insurance at a reasonable cost.
Our affiliated insurance brokerage coordinated a request for bids from the nation’s most trusted insurance providers and negotiated terms on behalf of ownership. The final general liability and umbrella insurance policies were significantly below what developers and building owners could typically secure on their own.In a luxury building, it’s imperative to separate residential entryways and access points for waste removal companies.
Based on this building’s location, there was no way to facilitate curbside pickup by the Department of Sanitation that adhered to these standards. To keep the process behind the curtain, FirstService extended its security procedures to include access for a third-party, private waste company.Waste is discreetly sorted and stored in the building’s basement, then exited through a dedicated loading dock for pick-up. This eliminated all streetside disposal.
We also deployed a package tracking portal for residents to monitor deliveries and request front-door drop off.
The volume of future occupants required an efficient package distribution system for timely delivery of all incoming parcels. FirstService deployed BuildingLink, an online, user-friendly portal that allows residents to see where their package is and request front-door delivery.Management also retained a third-party concierge to staff a valet room for residents to retrieve packages in person. In addition, residents can have their package delivered to their units by the building’s hallman upon request.
One Wall Street opened in 2022 and resident move-ins began shortly after. Today, the property is ranked among the city’s most successful residential conversions and is a coveted address among the who’s who of New York real estate.
The commercial components of the building have also invigorated the immediate streetscape and improved the neighborhood by introducing the only full-scale supermarket to the area."No other property management company offers a comparable advisory service for developers and investors looking to convert their commercial assets or break ground on a new residential building. New York City real estate is inherently complex. These companies need advisors who understand what residents expect in a luxury building and how to balance those demands with required returns on investment. FirstService Residential is absolutely a leader in this space."
— Marc Kotler, President | New Development Division
Building photos courtesy of Colin Miller.
We offer a full suite of building owner and developer services for luxury and ultra-luxury condominiums, rental properties, hotel residences, and mixed-use developments from the ground up or via conversion.
- Pre-development consulting to enhance value and building operations
Design support and analysis, amenities and lifestyle programming strategy, cost evaluations, and curb appeal enhancements
- Pre-opening budget management for calculated funding and compliance
Hands-on involvement throughout all phases of development to provide accurate budgets, cost estimates, and income projections
- Proprietary staff training to exceed resident expectations
Proprietary coaching programs for all building staff includes resort-class service training, conflict resolution, and high-end amenity management
- Customized operating procedures and manuals
Specialized maintenance and inspection procedures that increase the lifespan of mechanical assets and requisite building components
We help developers and investors create generational wealth, mitigate risk, and curb costs.