Midtown East Office Tower to Become 136 Luxury Apartments With $83.5 Million Financing
New York | October 22, 2026: A 95-year-old office building in Manhattan’s Midtown East is set for a major transformation, with plans to convert the property into 136 luxury apartments. CSC Real Estate has secured $83.5 million in acquisition and construction financing for the redevelopment of the 20-story tower at 136 East 57th Street.
The 92,582-square-foot property stands at the intersection of East 57th Street and Lexington Avenue, an established commercial and residential location in Manhattan. The redevelopment adds to the growing number of office buildings being repositioned for residential use across New York City.
20-Story Office Tower Will Become 136 Homes
The building at 136 East 57th Street was constructed in 1931 and underwent renovation in 1987.
CSC Real Estate acquired the property for $10 million in March and is now planning to transform the existing office building into a 136-unit luxury residential development.
The project will repurpose the existing structure rather than replace it with a completely new tower, giving the property a new residential role within Midtown East.
$83.5 Million Financing Secured for Project
The redevelopment is backed by $83.5 million in acquisition and construction financing provided by BridgeCity Capital.
The financing closed on October 13 and is expected to support CSC Real Estate’s plans to reposition the property as a high-end residential asset.
The project demonstrates how financing is increasingly being directed toward the conversion of older office properties in locations where residential demand remains strong.
Office-to-Residential Conversions Gain Momentum
The Midtown East project comes amid a wider shift in Manhattan’s property market, where developers are increasingly looking at older office buildings as potential sources of new housing.
High office vacancy, changing workplace requirements and continued demand for housing have encouraged property owners and developers to explore conversions.
However, converting an office building into residential space can require extensive structural, plumbing, mechanical and interior changes, making these projects more complex than conventional new residential construction.
More Major Conversions Are Reshaping Manhattan
Several large-scale office-to-residential projects are also moving forward across Manhattan.
One of the major developments involves the former Pfizer headquarters, which is being transformed into a residential community with more than 1,600 apartments. Another major project at 5 Times Square is planned to deliver more than 1,200 residential units through the conversion of existing office space.
Together, these developments show how Manhattan’s office inventory is increasingly becoming part of the city’s housing pipeline.
A Residential Shift Is Emerging in Midtown East
The proposed conversion at 136 East 57th Street also has a notable nearby counterpart. Across the street, another office property at 135 East 57th Street is undergoing a separate redevelopment that is expected to create hundreds of residential units.
The concentration of such projects could gradually change the character of the Midtown East corridor, bringing more residents into an area traditionally dominated by office and commercial activity.
What It Means for Manhattan’s Property Market
The project highlights the growing potential of adaptive reuse in Manhattan, particularly for older office buildings in locations with strong transport links and established amenities.
For the residential market, every successful conversion can add housing without requiring a completely new development site. For property owners, the trend could also create an opportunity to reposition ageing or underutilised office assets as residential properties.
At the same time, the high cost and technical complexity of conversions means that location, building structure and redevelopment economics will remain critical to whether similar projects can move forward.
What Happens Next
CSC Real Estate will proceed with the planned conversion of the 20-story building into 136 luxury apartments following the completion of the financing.
The project does not yet have a stated completion date. Once completed, the redevelopment will add another residential address to Midtown East and further demonstrate the changing role of Manhattan’s older office buildings in meeting housing demand.