The 1929 Stewart Hotel in Midtown Manhattan is being converted into just over 550 affordable apartments for low-income and formerly homeless New Yorkers, with a 2029 target completion. Slate Property Group and Breaking Ground purchased the 31-story building for $255 million and assembled financing from public subsidies and private partners. Tenants will be selected via NYC’s Housing Connect lottery and homelessness referrals, and the project will include on-site health and social services, with event-rental revenue supporting operations.
Midtown’s 1920s Stewart Hotel Will Be Converted Into 550+ Affordable Apartments By 2029
Nonprofit leader Brenda Rosen and property developer David Schwartz are partnering to convert Midtown's Stewart Hotel into affordable homes.Stephen Yang for BI
David Schwartz, a lifelong Brooklyn developer, says there is no quick fix for New York City's housing crisis — but repurposing vacant buildings can help. The historic Stewart Hotel in Midtown Manhattan, built in 1929, is slated to be transformed into just over 550 affordable apartments for low-income and formerly homeless New Yorkers, with a target completion date of 2029.
The 31-story property currently contains 611 vacant rooms. Slate Property Group and the nonprofit Breaking Ground purchased the building late last year for $255 million. Financing for the conversion combines state and city affordable housing subsidies with contributions from partners including Wells Fargo, JP Morgan Chase and the Low Income Investment Fund. Project costs will exceed the purchase price and construction estimates are still being finalized.
Why Hotels Make Strong Conversion Candidates
Schwartz and Breaking Ground CEO Brenda Rosen say hotels are practical for affordable-housing conversions because most rooms already have windows and private bathrooms; some even include kitchenettes, reducing the scope and cost of interior reconstruction compared with office-to-apartment projects. The Stewart’s Midtown location — close to subway and bus lines, jobs and schools — further strengthens its case as housing that connects residents to opportunity.
Resident Selection, Rents, And Services
The building’s future tenants will be drawn primarily from two sources: New York City’s Housing Connect lottery, which generally serves households at or below 60% of area median income, and coordinated referrals for people experiencing homelessness from Breaking Ground and the NYC Department of Homeless Services. Rents are expected to be about 30% or less of tenants’ incomes — likely under $2,000 a month for many households — and many units will be rent-stabilized.
Breaking Ground plans an on-site health and social-services hub in former conference and business spaces. The facility will provide free benefits counseling, a dedicated case manager, medical staff and therapists. The project team also intends to use the chandelier-filled lobby and ballroom as rentable event space; revenue from weddings and other events will be reinvested into building operations and resident services. Rosen plans community events such as an annual tenant Thanksgiving dinner.
Public-Private Partnership And Broader Goals
City Hall highlighted the Stewart conversion in its "Block by Block" plan as an example of public, private and nonprofit collaboration — an approach emphasized by the Mamdani administration. Schwartz and Rosen said the city’s support and the mix of subsidies and private capital were critical to getting the project off the ground. They hope the Stewart will serve as a model for similar conversions elsewhere, arguing that if such a project can be built in Midtown Manhattan, it can be replicated in other markets.
Construction has not yet begun; the team remains optimistic as it finalizes budgets and timelines. The Stewart previously closed around 2022 and briefly served as a migrant shelter before the sale and conversion plans were announced.
“It feels good to build projects that can house people that need it forever,” Schwartz said. “New York only works if it works for everyone.”
The classic hotel lobby has high ceilings, mirrored windows, and detailed crown molding.Stephen Yang for BI
The hotel will be converted into hundreds of affordable apartments for lower-income and formerly-homeless New Yorkers.Stephen Yang for BI
The Stewart opened in 1929 as the Governor Clinton. It has past lives as a hotel and a migrant shelter.Getty Images; Stephen Yang for BI
Hotel rooms' natural night and abundant windows make them ideal for an apartment conversion.Stephen Yang for BI
The Stewart Hotel team will add an on-site health and social services hub for tenants.Stephen Yang for BI
Schwartz and Rosen are working together with the city, state, and private parties to fund the affordable housing project.Stephen Yang for BI
Over half of NYC tenants spend more than 30% of their income on rent. Many struggle to make ends meet.Stephen Yang for BI
The Stewart is located near transit, jobs, grocery stores, and schools.Stephen Yang for BI
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