We Spent $104 Million Turning an Abandoned 19th-Century College in NYC Into Luxury Apartments

Why It Matters

It highlights the high capital risk and potential upside of converting historic properties into luxury housing in a competitive NYC market.

Key Takeaways

• Project cost escalated from $95M to $104M total.
• Connecting 150‑year‑old wing required 20‑ft foundation hole and extensive reinforcement.
• Roof and courtyard still unfinished, but building is functional.
• Only 50% occupancy, cash flow currently covers bridge debt.
• Property taxes now $700K annually after church exemption split.

Summary

Developers have transformed a derelict 19th‑century college campus in Manhattan into a luxury apartment complex, spending roughly $104 million—about $9 million over the original $95 million budget.

The most arduous engineering feat involved linking a 150‑year‑old wing to a new structure, which required excavating a 20‑foot deep foundation pit and shoring up the historic masonry to prevent collapse. Additional work included sealing a leaky roof and completing courtyard amenities, leaving only minor finish work pending.

Because the project was taken over from the Catholic Church, the developers split the lot so the church retained its tax‑exempt status while the residential portion now pays approximately $700,000 in annual property taxes. With only half of the units leased, current cash flow is earmarked for bridge‑debt service, but management expects net operating income to exceed debt obligations once occupancy improves.

The development underscores the financial volatility of adaptive‑reuse projects in New York, where high construction costs and tax burdens can delay profitability, yet successful leasing could deliver strong returns and set a precedent for repurposing historic urban sites.

Original Description

Matt Linde, 40, and Udi Kore, 49, converted the former Brooklyn campus of St. John’s College into a luxury apartment complex.

“They really felt like we did what we said we were going to do, which is to preserve as much of it as possible so it will never be forgotten. I think it’s one of those landmarks that will hopefully be part of Brooklyn forever,” Kore says.