25 Water Street
| Industry | Real estate |
|---|---|
| Founded | 1969 |
| Headquarters | Manhattan, New York City , United States |
| Products | Office space (1969–2022), Residential units (since 2023) |
25 Water Street, formerly known as 4 New York Plaza, is situated at the intersection of Water Street and Broad Street within Manhattan's Financial District, New York City. Positioned next to 125 Broad Street and the Vietnam Veterans Plaza, the building was completed in 1969 and operated as office space until 2022. In 2023, it underwent redevelopment to transform into more than 1,300 residential units, representing the largest conversion from office to residential use in the United States.
Office use
Built between 1967 and 1969 and initially called 4 New York Plaza, this structure was designed in a Brutalist architectural style by the firm Carson, Lundin & Shaw. The construction process was notably swift, with tenants moving in only 26 months after the design phase commenced. Among its early prominent occupants were the Manufacturers Hanover Trust Company and Oppenheimer & Co. The building primarily served as an operations hub for Manufacturers Hanover’s banking functions, including check processing. To accommodate air conditioning needs for 1960s-era mainframe computers, floors three through fifteen featured narrow windows; the second floor had larger windows for staff areas, while the top seven floors contained leased office spaces with more window area. Its reddish-brown brick façade was intended to harmonize with nearby historic Dutch colonial architecture. Although initially recognized with architectural awards, the narrow window design later drew criticism after data center operations ended.
After Manufacturers Hanover merged with Chemical Bank in 1992, combined banking activities were centralized here. By the 1990s, ownership passed to JPMorgan Chase following its acquisition of Chemical Bank. Due to financial challenges stemming from the 2008 financial crisis, JPMorgan Chase listed 4 New York Plaza for sale in 2009 and sold it later that year to Capstone Equities and Harbor Group International for $108.9 million. The new owners leased back portions of the space they formerly occupied, becoming key tenants themselves. The New York Daily News signed a lease in 2010 and relocated there in 2011.
In 2012, Harbor Group International sold the property to HSBC Alternative Investments and Edge Fund Advisors for $270 million. That year, Superstorm Sandy caused severe flooding that damaged mechanical and electrical systems common to Water Street buildings; major tenants such as JPMorgan and the Daily News did not return until late 2013. Declining revenues in the newspaper sector combined with impacts from the COVID-19 pandemic led to the Daily News shutting down its newsroom in 2020. In response to evolving work patterns favoring hybrid arrangements, JPMorgan began subleasing surplus office space in 2021.
Residential conversion
Following the pandemic, office rental rates plummeted in New York City amid vacancy rates reaching 17–18%, exerting downward pressure on prices. By mid-2022, Jeffrey Gural and Metro Loft Management expressed interest in acquiring the property. In December of that year, Edge Funds and HSBC Alternative Investments sold it to GFP Real Estate and Metroloft, collaborating with Rockwood Capital to pursue a residential conversion.
The building was renamed from "4 New York Plaza" to "25 Water Street" under new ownership. Redevelopment efforts benefited from regulatory reforms introduced by Mayor Eric Adams’s administration, including zoning modifications and tax incentives encouraging conversions from commercial to residential use. Financing included a $536 million loan, with CetraRuddy appointed as architect. Plans called for adding ten additional stories atop the existing twenty-two floors, refurbishing or repainting the exterior, and creating approximately 1,300 apartments—establishing it as the largest office-to-residential transformation nationwide. Initial renovation work commenced in mid-2023. Due to zoning restrictions on bedroom counts, some studio apartments incorporate dedicated home office spaces. The project features around 100,000 square feet of amenities such as an atrium, spa facilities, fitness center, game lounge, and both indoor and outdoor swimming pools.
25 Water Street became the first development in New York City to take advantage of New York State’s 467-m tax exemption program, which provides deductions for conversions from non-residential to residential properties. Leasing began in January 2025 with move-ins starting by February. A housing lottery offering affordable units launched in March. The development is marketed under the name SoMa, reflecting its location in southern Manhattan.