Office building at 50 Murray St. converted to apartments

Real Estate Weekly, March 5, 2003

New York-based Marson Contracting has completed the $60 million conversion of two former office buildings into 390 rental apartments at 50 Murray St., in Tribeca, for developer World-Wide Group. The project is one of the largest in New York City to be built by a general contractor (GC) in recent years. It was successfully delivered in early 2003 despite being stalled for four months after Sept. 11, 2001.

50 Murray St. had once been two separate buildings: a metal and glass-paneled I.R.S. building and an adjoining office building that was once the headquarters of the New York City Fire Department. Instead of offices, the two-year conversion yielded deluxe loft apartments.

Under its GC model, Marson provided an all-inclusive GC contract price. Marson did so despite having incomplete construction drawings and having to accommodate the many unexpected conditions that typically arise during such a large rehabilitation.

The Marson GC model is gaining increasing favor among developers. Worried about schedules and budgets, developers are comforted by a GC's ability to assume the risk and guarantee delivery for a set price, which is often less than a total CM price.

"Developers are becoming more sensitive to risk exposure in the building process, and that's good for us," said Leon D. Marrano, III, president of Marson Contracting. "50 Murray St. marked the first time World-Wide worked with a GC, and the decision to do so saved them millions. Once the developers understood the advantages of our GC model, they were pleasantly surprised by our delivery."

Meltzer/Mandl Architects designed the apartments at 50 Murray St., many of which boast 10-foot ceilings. The building also features a parking garage, health club, and a 5,500-SF roof deck with a solarium and basketball court.