By Howard Morrel & Leslie Hirsch
ABS Partners Real Estate is moving ahead with a significant rezoning proposal that could reshape a key stretch of Midtown Manhattan. The project, located at 515 West 57th Street, would introduce nearly 400 new residential units—further signaling the ongoing transformation of underutilized commercial sites into high-density housing across New York City.
A New Residential Addition to Midtown’s Skyline
The proposed development envisions a 30-story tower totaling approximately 377,000 square feet. Plans call for 394 residential units, including 119 affordable apartments designated under the city’s Mandatory Inclusionary Housing (MIH) program. A commercial component is also anticipated at the base, though specifics have yet to be finalized.
A Strategic Ground Lease Structure
ABS Partners secured control of the site through a 75-year ground lease, acquired from Duke Holdings for $17.2 million. This approach—reducing upfront acquisition costs while maintaining long-term control—continues to gain traction among developers operating in New York’s high-cost urban environment.
From Studio Space to Residential Opportunity
Currently occupied by television studio space, the site represents a broader shift in Midtown: aging or low-density commercial properties are increasingly being repositioned for residential use. As demand for housing remains strong, particularly in transit-rich corridors, these conversions present compelling redevelopment opportunities.
Why It Matters
For investors and landlords, this project underscores a clear trend—rezoning-driven residential development remains one of the most effective value-creation strategies in New York real estate. When paired with affordability programs like MIH, developers can unlock additional density while aligning with city housing priorities.
What Comes Next
The proposal must now proceed through the city’s ULURP approval process, which will ultimately determine its scale and feasibility. If approved, the project would meaningfully contribute to Midtown’s housing supply while reinforcing West 57th Street’s evolution as both a residential and mixed-use corridor.
Want to learn more? Let’s talk!
All the best,
Howard Morrel & Leslie Hirsch
Christie’s International Real Estate Group
(212) 956-4823
mha@christiesrealestategroup.com
