Closings are set to begin this August for a new office condominium property at 35 West 36th Street in Herald Square, Manhattan. From developer Hidrock Properties the 12-story, 80,000-square-foot structure is currently undergoing a conversion from traditional office space to office condominium units.
Earlier this week, the New York State Attorney General’s office declared Hidrock’s offering plan effective. The developer is highly optimistic that New York’s commercial office market will remain resilient despite tumultuous market conditions in other real estate sectors.
The conversion of 35 West 36th Street to office condominiums is a rarity in New York City. Instead of a traditional for-lease model, each tenant will own a percentage of the building based on the overall square footage of the office suite.
“Hidrock is meeting the market demand for small and midsized office condominium units in Midtown as buyers continue to come off the sidelines as things normalize,” said Steven Hidary, principal of Hidrock Properties. “Hidrock is proud to have redeveloped this building into high-class office space complete with unique qualities and finishes that surpass market standard. Declaring the offering plan effective sends a strong signal to buyers that the project is—and will continue to be—a success.”
Available units range from 3,300 square feet for a half-floor office to 6,600 square feet for full-floor suites. Each unit offers direct elevator access, oversized windows with multiple exposures, exposed original brick, 11-foot ceiling spans, hardwood floors, large kitchen areas, private restrooms, and individually controlled HVAC systems.
To date, Hidrock reports 25 percent of the 24 available units have already sold with only 18 units remaining, and may be purchased for use as a primary office space or as an investment for passive income. Asking prices at the property start at just over $3 million for a half-floor unit.
The identity of the confirmed buyers has not been revealed.
“The office condo market is bouncing back as prices and sales activity citywide continue to trend upward after bottoming out last spring,” said Michael Rudder, principal of Rudder Property Group, the exclusive marketing and sales agent leading the conversion. “Historically low interest rates and low inventory coupled with readily available financing make purchasing an office more favorable than signing a long-term lease. 35 West 36th Street presents a unique opportunity to purchase an office condo at a relative discount.”