FiDi Office Conversion Opens Lottery for 162 Affordable Units

A housing lottery opened this week for 162 affordable apartments at 77 Water Street, the latest office-to-residential conversion to reach the market in the Financial District. The building, also known as 1 Gouverneur Lane, is being transformed by Vanbarton Group from a 26-story office tower into 648 rental apartments, according to 6sqft, which first reported the lottery details.

The affordable units are priced from $1,056 per month to $2,823 per month, covering studios through two-bedrooms. Applicants must earn 40, 80 or 100 percent of the area median income to qualify. Applications are open until November 17, 2026. Questions about the offer should be directed to NYC’s Housing Connect department by dialing 311.

For a Lower Manhattan office market still working through the shift away from traditional workplaces, the project is a closely watched test case. Vanbarton acquired 77 Water Street from Sage in 2024 for $90 million with plans to turn it into housing. The design, led by CetraRuddy, adds 50,000 square feet and seven new floors to the existing 1970s building. Apartments will range from studios to three-bedrooms.

The building will also offer roughly 30,000 square feet of amenities, including fitness and wellness facilities, resident lounges and outdoor spaces. Location is a selling point: the tower sits a block from the East River, with access to the Seaport District, the ferry at Pier 11 and the rest of Lower Manhattan.

The conversion has also meant saying goodbye to two local curiosities. For many years, a replica of a World War I fighter plane sat on the building’s rooftop, and the lobby housed a whimsical turn-of-the-century penny candy store. According to Untapped New York, the candy store has closed and the rooftop plane has been deconstructed.

A Vanbarton spokesperson told Untapped that both were in a very advanced state of deterioration, making restoration unfeasible. “While they could not be saved in their original form, we appreciate the fond memories and community connection to them, and are committed to honoring the character and history of the building as we move it into its next chapter,” the spokesperson said.

The building’s public plaza is also in line for changes. As Crain’s reported in February, the developer plans to remove two metal sculptures and some trees from the 77 Water Street plaza, the first makeover of the public space since it opened more than 50 years ago. The plan adds new benches, planters and a handful of new trees, but removes “Cityscape Fountains” by artist Victor Scallo and “Helix,” Rudolph de Harak’s stainless steel sculpture.

With the lottery now live, the project shows how office conversions are beginning to deliver income-restricted housing to the market in Lower Manhattan, one of the neighborhoods at the center of the city’s conversion push.