A housing lottery opened this week for 162 affordable apartments at the Financial District’s latest office-to-residential conversion, giving income-qualified New Yorkers a shot at Lower Manhattan rentals starting at $1,056 a month.
The building is 77 Water Street, also known as 1 Gouverneur Lane, a 26-story office tower that Vanbarton Group is turning into 648 rental apartments with 30,000 square feet of amenities. Households earning 40, 80, or 100 percent of the area median income can apply. The affordable units, ranging from studios to two-bedrooms, are priced between $1,056 and $2,823 a month, according to details published by 6sqft and drawn from the city’s Housing Connect listing. Applications are open until November 17, 2026.
The project is a significant expansion, not just a refit. Designed by CetraRuddy, it adds 50,000 square feet and seven new floors to the existing structure, yielding nearly 650 apartments from studios to three-bedrooms. Planned amenities include fitness and wellness facilities, resident lounges, and outdoor spaces. Vanbarton bought the building from Sage in 2024 for $90 million with residential conversion in mind.
The building, a 1970s office tower, had a reputation for two oddities. For years, a replica World War I fighter plane perched on its roof, and the lobby housed a whimsical, turn-of-the-century-style 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,” adding that the company appreciates “the fond memories and community connection to them” and is committed to honoring the building’s character and history as it moves into its next chapter.
The changes extend outside the building. 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 in more than 50 years. The plan adds new benches, planters, and a handful of new trees, but it would remove “Cityscape Fountains” by artist Victor Scallo and “Helix,” Rudolph de Harak’s stainless steel sculpture.
The location puts residents a block from the East River, with easy access to the Seaport District, the ferry at Pier 11, and the rest of Lower Manhattan.
Full application details are available through the city’s Housing Connect portal. Questions about the offering must be directed to NYC’s Housing Connect department by dialing 311.
Frequently Asked Questions
How do I apply for the affordable apartments at 77 Water Street?
Applications are submitted through NYC’s Housing Connect portal and are open until November 17, 2026. Questions can be directed to NYC Housing Connect by dialing 311.
How much do the affordable apartments at 77 Water Street cost?
The 162 income-restricted units have monthly rents ranging from $1,056 to $2,823, depending on unit size and the household’s income level. Eligible households earn 40, 80, or 100 percent of the area median income.
How many apartments will 77 Water Street have after the conversion?
The former 26-story office tower is being converted into 648 rental apartments, with the project adding 50,000 square feet and seven new floors. Planned amenities include fitness and wellness facilities, resident lounges, and outdoor spaces.
Who is developing 77 Water Street and how much did they pay for it?
Vanbarton Group is converting the building, designed by CetraRuddy, after buying it from Sage in 2024 for $90 million. The building is also known as 1 Gouverneur Lane.
What is happening to the sculptures and plane at 77 Water Street?
The rooftop replica World War I fighter plane has been deconstructed and the lobby penny candy store has closed. The plaza sculptures ‘Cityscape Fountains’ and ‘Helix’ are slated for removal as part of the public space makeover.
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