Scott Rechler and Marc Holliday, leaders of RXR and SL Green, are considering transforming 5 Times Square from an office building into residential units, according to sources cited by Commercial Observer. This move suggests a shift in strategy, particularly as CoStar has removed the listing for available office space in the building, signaling that new commercial tenants are no longer being sought. As of September 2022, only 31 percent of the 1.1 million-square-foot, 39-story tower was occupied.

RXR has owned the property since 2014 when it was purchased with David Werner Real Estate for $1.5 billion. Currently, RXR and SL Green co-own the building, and two years ago, they secured $1.3 billion in refinancing to cover renovation costs, with lenders including Morgan Stanley, Apollo Global Management, and AIG. The renovations enhanced the building’s lobby, restrooms, elevators, and added a 32,000-square-foot amenity space, which includes a fitness center, lounge, restaurant bar, and two golf simulators.

While details on the potential residential conversion remain unclear, it’s suggested that only part of the building might be repurposed, similar to the conversion approach seen with the Helmsley Building at 230 Park Avenue. Previously, the primary tenant at 5 Times Square was EY, occupying over 600,000 square feet, but the company relocated to Hudson Yards in 2017. RXR is also working on converting a Brooklyn migrant shelter into affordable housing, reflecting their ongoing interest in residential projects.