Breaking Ground, Slate file to grow Stewart Hotel to 572 units

BG Stewart Housing Development Fund Corporation closed on the 31-story former Stewart Hotel at 371 Seventh Avenue in Midtown Manhattan for $260,000,000, an ACRIS deed shows, with CYH Manhattan LLC as seller. Three hundred and seven days later, an Alteration-CO application hit the city’s DOB NOW system proposing to grow the building’s residential count from 509 units to 572, a 63-unit jump, as the conversion to permanent affordable housing moves from announcement to paperwork.

Why it matters

The deal pairs Breaking Ground, the nonprofit supportive-housing operator, with developer Slate Property Group, who is handling construction while Breaking Ground takes over ownership and operations once the work is done. The filing invokes Multiple Dwelling Law Section 301(7), the mechanism that lets a Class B hotel convert to long-term residential occupancy without a full new-building process. That is the same path New York State has been pushing landlords toward as it tries to turn over underused Midtown hotel stock into housing, and this is Breaking Ground’s sixth such conversion. For other owners of aging Midtown hotels, the ten-month gap between closing and filing is the more useful data point: financing stacks for conversions this size, drawing on state and city supportive-housing subsidies plus tax-exempt bonds, take time to assemble even after a deed is signed.

The numbers

The deed, recorded December 29, 2025, covers both the hotel parcel at 371 Seventh Avenue and an adjoining lot at 148 West 31st Street, Block 806, for a combined $260,000,000. The Alteration-CO application, filed October 22, 2026 under job number M01453701-I1, lists architect Ariel Aufgang of Aufgang Architects and proposes keeping the building at 31 stories while taking it from 509 existing units to 572, an addition of 63 permanent residences layered onto the ongoing hotel-to-housing conversion.

What’s next

The filing still has to clear plan examination before work can proceed on the added units, and Breaking Ground has said it expects construction on the broader conversion to run roughly two years once it starts. Other developers watching Midtown’s hotel inventory for similar MDL 301(7) conversions can track the next filing at /markets/new-york/, where this desk follows every Manhattan filing and deed as it posts.