New York Office for Sale - Chelsea
118–120 West 27th Street presents a rare opportunity to acquire a centrally located mixed-use loft building within Manhattan’s newly established Midtown South Mixed-Use (MSMX) district. Positioned between Sixth and Seventh Avenues, the property sits at the crossroads of Chelsea, NoMad and Flatiron, offering exceptional access to one of the most transit-rich and highly trafficked districts in the city. With the MSMX rezoning now in effect, this corridor is poised for transformative residential and commercial growth at a scale not previously permitted.
The 12-story structure has undergone extensive modernization, with ownership investing more than $8.6 million into building systems upgrades, legalization work and residential conversion initiatives. New mechanicals, upgraded electric service, life-safety enhancements, and two modernized elevators establish a strong foundation for a future owner to complete the remaining conversion scope with meaningful cost savings. The legalization process is already 84 percent complete, positioning the next investor to step into a streamlined path toward finalizing the mixed-use certificate of occupancy.
The MSMX framework newly unlocks residential conversion rights for the remaining 9,384 square feet of vacant commercial space across floors 4–6 and the rear of the second floor, an avenue previously unavailable under the former M1-6 zoning. When combined with the recently enacted 467-M tax incentive program, a buyer can achieve a dramatic reduction in operating expenses through a multiyear real estate tax exemption on newly converted residential units. Existing free-market residential floors already demonstrate strong demand, with renovated two-bedroom units achieving rents around $75 per square foot.
Offered at $17,500,000, 118–120 West 27th Street represents an exceptional opportunity to capitalize on Midtown South’s new zoning era while taking over a conversion project where the most complex and capital-intensive components have already been completed. For investors seeking a strategic, transit-oriented asset with substantial value-creation potential, this property combines location, timing and entitlements in a way few opportunities can match.
