Cohen Bros, which manages nine office towers in Midtown and is currently grappling with over $600 million in overdue loans, is set to redevelop the upper sections of a 499,100-square-foot tower located between 49th and 50th streets. The plan involves converting these upper floors into approximately 172 condominium units, each measuring around 2,000 square feet.

This redevelopment initiative is supported by the Department of City Planning through its rezoning project, the City of Yes for Housing Opportunity, designed to streamline and expedite such building transformations. The building involved in this project includes the well-known Saks Fifth Avenue store, situated in a landmarked 10-story structure built in the early 1920s at 611 Fifth Avenue, as well as the adjacent tower erected in 1988. The latter, initially occupied by Swiss Bank until its departure in 2006, is now only 12% filled.

No modifications are planned for the landmarked Saks building. Instead, Saks will continue to use the lower 10 floors of the adjacent tower, strategically located near Rockefeller Center and St. Patrick’s Cathedral. Post-conversion, this tower will offer 344,300 square feet of residential space, while maintaining 578,500 square feet as department store area.

The construction phase is slated to take roughly 18 months, aiming for completion in 2026. This will involve relocating tenants whose leases extend to at least 2027. David Fogel, Executive Vice President of Cohen Bros., indicated that the new units would be marketed as condominiums, though a specific cost estimate for the conversion was not disclosed. Further details on the application and the financial aspects of the conversion remain under wraps.