A 10-story office building at 41-25 Crescent Street sold Thursday for $125 million, marking the highest price ever paid for a Queens office-to-residential conversion prospect.

This week, Slate Property Group and Carlyle Group closed on the sale of 41-25 Crescent Street, a 10-story 1980s office block one subway stop from Midtown, according to city records and insiders at Lee & Associates. The $125 million deal beats previous Queens office conversion trades by nearly $40 million and signals fresh confidence in Long Island City’s residential market, even as Manhattan landlords sweat empty offices.

Brokers say the buyers are betting big on a full office-to-residential overhaul, leveraging this spring’s zoning flexibilities on Crescent between Queens Plaza South and 41st Avenue. Slate’s Martin Nussbaum confirmed plans to convert the property into as many as 250 apartments, targeting a Spring 2026 opening, with roughly a quarter listed as affordable. “You’re seeing the future of office space in LIC right here,” Nussbaum said.

The seller, the Hakimian Organization, originally paid $48 million for the site in 2014 and held through COVID’s disruption of the Queens market. Lee & Associates’ Peter Braus, who brokered the sale, said overwhelming demand from potential residential developers drove the bidding. “We had nine offers, all from groups who wanted to flip this thing to apartments,” Braus told NYC Pulse.

The deal’s timing is critical: NYC’s latest tax incentives for conversions phase out in late 2024, and contractors say Crescent Street’s low vacancy and immediate Q/N/W train access clinched the record price. The property sits across from the recently-leased Sven tower and neighbor to the rapidly transforming Queens Plaza corridor, where new bars, gyms, and coffee shops are popping up weekly.

Frequently Asked Questions

What makes 41-25 Crescent Street’s $125M sale significant?

This is the highest price ever paid for a Queens office building slated for residential conversion. The deal signals both robust demand for rental apartments in LIC and the continued appeal of office-to-resi plays in New York, amid wider office market uncertainty.

Who were the parties involved in the sale?

The buyer is a partnership between Slate Property Group and the Carlyle Group, two firms that have ramped up activity in outer-borough conversions. The seller is the Hakimian Organization, which owned the building for a decade.

When will the office-to-resi conversion be completed?

Slate Property Group expects to break ground by early 2025, with the first apartments at 41-25 Crescent Street set to hit the market in Spring 2026, pending city approvals and construction timelines.

Frequently Asked Questions

What is the significance of the $125 million sale of 41-25 Crescent Street?

The $125 million sale is the highest price ever paid for a Queens office building slated for residential conversion, setting a new borough record.

Who bought and sold 41-25 Crescent Street in Long Island City?

The buyers are Slate Property Group and Carlyle Group, and the seller was the Hakimian Organization.

What are the plans for 41-25 Crescent Street after the sale?

The building will be converted from offices into 250 apartments, with about 25% designated as affordable housing, targeting a Spring 2026 opening.

When is the office-to-residential conversion of 41-25 Crescent Street expected to be completed?

Slate Property Group expects to break ground by early 2025, with the first apartments set to hit the market in Spring 2026.

How much did the Hakimian Organization originally pay for 41-25 Crescent Street?

The Hakimian Organization originally paid $48 million for the site in 2014.

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