SoMA at 25 Water Street Office-to-Residential Mixed-Use Conversion

Deal value: $650,000,000

Conversion of the former 25 Water Street office tower in Manhattan into a mixed-use development featuring 1,320 residential units, ground-floor retail, and extensive amenities, supported by a 35-year affordability-linked tax abatement.

The core investment motivation is to capitalize on the structural shift in Manhattan’s real estate market, where high office vacancy rates and strong demand for housing—especially affordable units—create a compelling opportunity for office-to-residential conversion. The strategic purpose is to unlock value from underutilized office assets by transforming them into high-density, amenity-rich residential communities, leveraging new tax incentives and policy support for housing production. This investment is driven by the belief that urban living demand will remain robust, and that regulatory tailwinds and tax abatements make such conversions financially attractive now.