East 42nd Street office building to be converted to apartments

New York Post - Apr 27th, 2025

Investor David Werner has completed the purchase of 300 E. 42nd St., an 18-story office and retail building, for $52 million, which is less than half of its 2019 sale price. Werner plans to flip most of the building for a partial residential conversion, retaining a 7,300 square-foot retail space. The project is backed by a $45 million pre-development acquisition loan from Ran Eliasaf’s Northwind Group, with a construction loan anticipated in nine to twelve months. Northwind Group is known for financing the revival of large-scale developments. Although the new owner of the converted sections has not been officially disclosed, sources suggest it is the real estate investment firm CSC, which specializes in redeveloping distressed assets.

The plan includes converting over 93,000 vacant square feet into 135 rental apartments, leaving around 90,000 square feet for existing office tenants, mainly diplomatic and government agencies. The project is expected to benefit from a tax abatement under the state's 467-m program, which requires 20% of the units to be affordable. This transformation is part of a larger trend in Midtown Manhattan, where residential conversions are increasing to meet housing demand. This move also aligns with Werner's involvement in another large-scale conversion project nearby, indicating a strategic focus on urban redevelopment in prime locations.

Midtown Manhattan David Werner Northwind Group Residential Conversion Real Estate Investment Csc 467 M Program

Story submitted by Fairstory

RATING

6.4

Moderately Fair

Read with skepticism

The article provides a detailed account of a significant real estate transaction and development plan, focusing on the conversion of office space into residential units in New York City. It excels in clarity and timeliness, offering a straightforward narrative that is relevant to current urban development trends. However, the story could improve in balance and transparency by including a wider range of perspectives and more detailed source attribution. While the article is informative for those interested in real estate, its potential impact and engagement are limited by its technical focus and lack of broader narrative elements. Overall, the story is a solid piece of reporting that could benefit from additional context and verification to enhance its reliability and public interest appeal.

Accuracy

The story presents a number of factual claims regarding the sale and planned conversion of the building at 300 E. 42nd St. The reported sale price of $52 million and the previous sale price in 2019 are consistent with industry reports, indicating accuracy in these figures. However, the article mentions that the sale is not yet posted in public records, which leaves room for verification. The involvement of David Werner and the subsequent flip to CSC Real Estate are also reported accurately, though the lack of official confirmation from Eliasaf about the buyer introduces some uncertainty. The detailed description of the conversion plans and financing arrangements aligns with known industry practices, although specifics like the exact terms of the tax abatement program and the precise timeline for construction loans need further verification.

Balance

The article focuses primarily on the business and development aspects of the building's sale and conversion, with limited exploration of potential community impacts or alternative perspectives. While it provides a detailed account of the financial and logistical plans, it does not offer viewpoints from local residents, city planners, or other stakeholders who might be affected by the conversion. This narrow focus could lead to an imbalance in the narrative, potentially overlooking the broader implications of such a development in a significant urban area.

Clarity

The article is generally clear and well-structured, providing a logical flow of information from the sale of the building to the planned conversion. The language is straightforward, making the complex transaction details accessible to readers. However, the absence of certain confirmations and the reliance on unnamed sources could cause some confusion about the veracity of the claims. Overall, the story maintains a neutral tone, focusing on factual reporting rather than opinion.

Source quality

The article cites specific individuals and companies involved in the transaction, such as David Werner, Ran Eliasaf, and CSC Real Estate, which lends credibility to the story. However, the lack of direct quotes or statements from these parties, particularly regarding the confirmation of the buyer and detailed plans, weakens the source quality. The article would benefit from a broader range of sources, including public records or statements from city officials, to enhance its reliability and depth.

Transparency

The article provides a clear outline of the transaction and development plans but lacks transparency in certain areas, such as the absence of public records confirming the sale and the anonymity of some sources. The lack of detailed explanation regarding the methodology of obtaining information, such as how the sale price was verified or the basis for the claims about tax abatements, reduces transparency. Additionally, potential conflicts of interest, such as financial ties between the involved parties, are not disclosed, which could affect the story's impartiality.