{"id":880,"date":"2026-07-11T11:05:47","date_gmt":"2026-07-11T11:05:47","guid":{"rendered":"https:\/\/cityrelocationnews.com\/?p=880"},"modified":"2026-07-11T11:05:47","modified_gmt":"2026-07-11T11:05:47","slug":"can-office-to-residential-conversions-survive-the-pfizer-building-crisis","status":"publish","type":"post","link":"https:\/\/cityrelocationnews.com\/?p=880","title":{"rendered":"Can Office-to-Residential Conversions Survive the Pfizer-Building Crisis?"},"content":{"rendered":"
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At the Pfizer building on East Forty-second Street, earlier this week, disaster, and the sense of excitement that disaster can create, lingered. Cops refused to allow the curious to pass through barricades at the edges of a \u201cfrozen zone.\u201d A huddle of emergency personnel pored over blueprints before breaking up to enter the stricken tower. A young woman ran by and asked if the building had fallen yet, while a summer hire from the New York Post<\/em> tried to find people who had been there when the situation first went Code Red. But one CBS on-air reporter had it right. After the city had worked through the night, he announced, taking advantage of a lull in traffic on Second Avenue, things had gone “from unstable to stable.\u201d \u201cGot it,\u201d his soundman said.<\/p>\n

Read more Our Plastic-Surgery Nightmare<\/a><\/p>\n

The Pfizer building stands opposite the old Daily<\/em> News<\/em> building, and one block from the Chrysler Building. The firm founded by the prolific New York City architect Emery Roth built the tower\u2014technically two adjoining buildings\u2014in the nineteen-sixties. Pfizer had its headquarters there for decades before, finally, looking for fresh office space. In 2024, a real-estate group led by Nathan Berman, a well-known converter of out-of-date office buildings into apartments, began transforming the towers\u2014the taller of which was thirty-seven-stories high\u2014into a mixed commercial-residential complex. Berman knew how to do it. He had built his career in New York on rehabbing such structures, even earning himself the nickname the King of FiDi, for his developments around Wall Street. I wrote about Berman, and his firm, Metro Loft Management, in 2024, when he was in the middle of one of his financial-district projects, on 55 Broad Street, and shortly after he had signed on to convert the Pfizer building, which was to be his biggest job ever. In a city plagued by a perpetual housing crisis, Berman\u2019s repurposing of vacant office space had been wildly successful (\u201cWe\u2019ve never had this kind of imbalance between demand and supply before,\u201d he told me, in 2024) and fit with the popular push to do something\u2014anything!<\/em>\u2014to alleviate it. In the past few municipal-election cycles, New York\u2019s housing crunch has reliably been a major focus of voter concern, and the importance of turning the hundreds of sclerotic mid-century office buildings that splatter midtown like refuse from a party long since over into livable spaces has practically become an article of faith within New York City\u2019s political class. (Pfizer relocated to dewy new Hudson Yards in 2023.)<\/p>\n

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But sometime Tuesday morning the city received a 911 call that some bricks were falling from the Pfizer fa\u00e7ade. (The report later proved false.) Shortly after, the Fire Department responded to a report from construction workers that some of the steel support columns on the twenty-first floor were buckling. Despite their insouciance\u2014the workers, in a video later posted on the internet, seemed to be in no hurry to get out\u2014this was not something you ignore. Construction sites have lots of mishaps, big and small, but columns don\u2019t buckle halfway up skyscrapers. Columns that fail cause other columns to fail. Steel columns that fail are the worst kind, according to\u00a0Joel Silverman, a well-known construction consultant based in New York, because while concrete columns pancake, the \u201ccollapse modality\u201d in a steel building is that they \u201ctopple.\u201d He added: \u201cAnd therefore the footprint of the failure is, what, thirty-five stories or five hundred feet.\u201d Suddenly, a project launched with great energy and acclaim\u2014a recent piece on Berman and conversions disclosed that he was adding a floor every four days\u2014had the makings of the Titanic.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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If so, Berman, who had previously been celebrated for bringing conversions to the city that were, if not cheap, at least not pornographically expensive, was suddenly a potential J. Bruce Ismay. Buildings don\u2019t just typically fall over; someone, in all probability, made a mistake in building them. The Pfizer conversion used almost no organized labor, which did not make the unions happy; the only union workers on the site were the steamfitters, who immediately claimed that Berman skimped on steel. (He has called the charge \u201ctotal nonsense.\u201d) Scabby, the inflatable rat, quickly made an appearance at the site. The carpenters\u2019 union deployed a truck to the area with an electronic readout sign: \u201cCrime Scene,\u201d one message read. \u201c1,600 residential units at risk due to cutting corners.\u201d Another readout asserted \u201cShame on Metroloft.\u201d (Berman told me he would not comment on the Pfizer situation.)<\/p>\n

In the world of New York City real estate, Berman is prominent but neither famous nor infamous. Mike Vatter, of the Laborers\u2019 Union, told me that Berman was just \u201cone of many.\u201d And, although the current mayoral administration wants new units in old buildings, Berman\u2019s projects don\u2019t exactly fit neatly within the Zohran Mamdani mold. In 2024, as we toured his Wall Street conversions, he pointed out amenities such as swimming pools and well-stocked gyms\u2014luxe additions that had been planned for the Pfizer building as well. Creating housing for first-year associates at Goldman Sachs\u2014which is how Berman told me he conceptualizes his work\u2014qualifies you as a do-gooder only within the extraordinary economic microenvironment of Manhattan.<\/p>\n

But, anyway, renown wasn\u2019t what Berman sought, as he made clear when I wrote about him. For him, the puzzle of how to make money was what mattered\u2014he likened converting an office building into a residence to solving a Rubik\u2019s Cube. If the math didn\u2019t work, he hollowed out cores and used the leftovers to add floors on top until it did. Berman\u2019s passion for shoving as many units into as small a space as possible and then going big on plush facilities led one of his own architects to describe the developments to me as \u201cslums for the rich.\u201d He was unapologetic: \u201cIf the price per pound is right, I say, \u2018Let\u2019s go.\u2019\u00a0\u201d Berman was born in the Soviet Union, in 1959, and another of his business principles, he explained, was to try to avoid any deal that involved government, i.e., he would not get involved in a project that required a change in zoning regulations. \u201cLife is short,\u201d he said.<\/p>\n

Read more The Story of France vs. Morocco<\/a><\/p>\n

Up until July 7th, none of this was a problem. But now, faced with a potential debacle on East Forty-second Street, Berman could have used a few friends\u2014city officials, union leaders, the kind you make when you put your name on an art museum. (Before turning to real estate, Berman worked at his father-in-law\u2019s art gallery.) It didn\u2019t help that when Berman stepped up to explain the problem, he made the mistake of free-associating in front of a reporter. \u201cThis incident is nothing more than a typical construction mishap,\u201d he told the Times,<\/em> on Tuesday evening. \u201cIt happens, unfortunately, far too often on construction sites: falling cranes, people\u2014God forbid\u2014falling off buildings, windows falling.\u201d<\/p>\n

Though attention immediately focussed on Berman, he wasn\u2019t the only possible malefactor by any means. A conversion of this size isn\u2019t a solo project. Berman isn\u2019t the only owner of the structure\u2014he shares that title with David Werner, known informally around the city as the King of Flips, whose sense of civic obligation makes Berman start to sound like a member of Mamdani\u2019s Democratic Socialists of America. And where was Gensler, the global design and planning firm that would have submitted the architectural drawings? Or the structural engineer, the well-known firm Goldstein Associates Consulting Engineers? And the layers of inspection oversight that a renovation like this gets from the private inspectors that it hires, and ultimately from the city? According to the Times<\/em>, which combed through \u201cmillions of rows of city violation records,\u201d the inspection firm hired for the project had a history of errors and violations on previous jobs, for which the city assessed fines, not all of which the company appeared to have paid. Previous problems with the Pfizer-building renovation also came to light in the press\u2014a fall off a ladder and objects that plummeted to the street below. Money, as George Bernard Shaw once wrote, \u201cis not made in the light.\u201d New York City real estate sometimes resembles a basement crawl space.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Since the buckled columns soared into the public consciousness on Tuesday, the city has moved in steel struts to reinforce the structure. By the front entrance on Forty-second Street, I could see piles of them lying on the nearby ground, ready to be deployed so that the Pfizer building might stand. A widely circulated image showed a warped column near a window under which Berman had installed a combo heat-slash-air-conditioning unit. I remember how proud he\u2019d been about the units, which he had also installed at 55 Broad Street\u2014it was cheaper, he told me, to install such units in every one of the thousands of apartments he was creating than to use central heating and cooling. No one had ever done it before, he explained: the technology was new; the business model was impeccable. That was the type of pride he took in his work. \u201cYou add more load to something that can\u2019t support it,\u201d Berman told The Real Deal,<\/em> an industry publication, after the buckling at Pfizer. \u201cIt\u2019ll give way, and that\u2019s what happened, and now it just needs to be fixed.\u201d<\/p>\n

This sentiment was likely a bit optimistic. The crisis was over\u2014sort of. The city\u2019s frozen zone had thawed. The Casual Greek restaurant on East Forty-fourth had reopened. The problems, that Berman pointed out were contained to a twenty-by-twenty-foot corner of a 1.3-million-square-foot building, were no longer a threat. He shrugged off the experience, telling the Times<\/em>, \u201cI don\u2019t know that a four-inch sag is a collapse.\u201d He promised to get right back to work\u2014and maybe he will. But the real-estate niche that Berman had carved out for himself in New York was likely forever changed. Or at least the financial calculations were. Two days after the incident, a developer told the Wall Street Journal<\/em> that the days of high-wire stunts\u2014like pulling out cores and sticking extra floors on the roof\u2014might belong to the past. A real-estate lawyer warned of a \u201cnew Pfizer premium\u201d on conversions in the near term. But first, Berman will have to deal with the immediate aftermath of July 7th. Mamdami has vowed a \u201crigorous\u201d safety assessment before work resumes, and the city comptroller has vowed that there will be an investigation. Berman, who had long tried to minimize municipal interface, was about to enter his Room 101. \u2666<\/p>\n

Read more \u201cRemake\u201d Confronts a Father\u2019s Grief and a Filmmaker\u2019s Responsibility<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The thirty-seven-story tower in midtown was stabilized, after almost falling over earlier this week. Now Nathan Berman, the real-estate developer behind its renovation, will have to deal with the fallout, writes D. T. Max.<\/p>\n","protected":false},"author":1,"featured_media":879,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-lede"],"yoast_head":"\nCan Office-to-Residential Conversions Survive the Pfizer-Building Crisis? - City Relocation News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cityrelocationnews.com\/?p=880\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can Office-to-Residential Conversions Survive the Pfizer-Building Crisis? - City Relocation News\" \/>\n<meta property=\"og:description\" content=\"The thirty-seven-story tower in midtown was stabilized, after almost falling over earlier this week. 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