The Candler Building's Shocking Transformation: 5 Things You Didn't Know About 220 West 42nd Street's Future

The address 220 West 42nd Street, an iconic location at the bustling southern edge of Times Square, is currently at the epicenter of a dramatic and high-stakes real estate saga in New York City, which is dominating headlines as of December 23, 2025. This historic Beaux-Arts skyscraper, officially known as the Candler Building, is undergoing a profound identity shift, moving from a financially troubled office tower and a temporary migrant shelter to a planned high-end hotel, a transformation fueled by a major ownership change and ambitious new development plans. The building's recent history is a microcosm of the volatile post-pandemic commercial real estate market in Midtown Manhattan, characterized by a significant financial restructuring that saw the property change hands via a deed-in-lieu of foreclosure. The new owner, Yellowstone Real Estate Investments, is now steering the 24-story landmark toward a completely new purpose, promising to reshape its role in the Theater District for the next generation.

The Candler Building: A Timeline of Ownership and Financial Turmoil

The financial narrative of 220 West 42nd Street has been one of high leverage and recent distress, culminating in a major transfer of ownership that has secured its future, albeit in a drastically altered form. The building’s recent financial turmoil reflects the broader challenges facing office properties in the Times Square area.

The Deed-in-Lieu Transaction and New Ownership

The most significant recent development is the transfer of the property to Yellowstone Real Estate Investments via a deed-in-lieu transaction. This mechanism allowed the previous owner, UK-based investment firm EPIC, to hand over the title to Yellowstone, effectively surrendering the property to avoid a lengthy and costly foreclosure process. This move is a clear indication of the financial pressure that had mounted on the asset. Yellowstone, now the sole owner, has taken on the task of injecting new life and capital into the historic structure.

Before the deed-in-lieu, the property had secured significant financing, including a $60 million loan from Bank Hapoalim. The inability to service or refinance the debt, common for many older office buildings following the pandemic, ultimately necessitated the ownership change.

Commercial Tenants and Retail Presence

Despite the financial restructuring, the Candler Building remains an active commercial hub. The ground floors and lower levels are particularly valuable due to their prime Times Square location. A notable recent tenant is TM:RW, an immersive experience retailer that secured a substantial 20,000-square-foot lease across three floors. This type of experiential retail is highly sought after in the Theater District and highlights the building's enduring appeal as a high-traffic destination. The building, which spans approximately 235,300 square feet, is a key component of the bustling commercial real estate landscape of Midtown Manhattan.

From Humanitarian Center to High-End Hotel: The Controversial Pivot

The most compelling and controversial aspect of 220 West 42nd Street’s current status is its temporary role and its planned future, representing a stark contrast in purpose and function.

The Current Role as a Humanitarian Relief Center

In a move announced by Mayor Adams and the City of New York, a portion of the building has been repurposed as a Humanitarian Relief Center. This site serves as a temporary shelter for single adult men, making the Candler Building a central, high-profile location in the city's response to the ongoing migrant crisis. Its use as a shelter has placed the address directly in the public eye, shifting its identity from a traditional office building to a critical piece of municipal infrastructure.

The Future: A 265-Room Times Square Hotel

The interim use as a shelter is set to be short-lived, as the new owner has already filed definitive plans for a major conversion. Yellowstone Real Estate Investments is moving forward with a proposal to transform the building into a 265-room hotel. This planned conversion is a significant development for the Times Square area, which continues to see strong demand for hospitality projects. The move from a mixed-use office and shelter space to a dedicated hotel is a strong bet on the resurgence of tourism and business travel in the district. The project will involve extensive renovations to adapt the century-old structure into a modern, competitive hospitality offering.

Architectural Legacy and The Coca-Cola Connection

Beyond the current financial and political drama, 220 West 42nd Street holds a distinguished place in New York City’s architectural history, tied directly to one of the most recognizable brands in the world.

The Vision of Asa Griggs Candler

The building’s namesake and original developer was Asa Griggs Candler, the legendary founder of The Coca-Cola Co. Built between 1912 and 1914, the Candler Building was intended to be Candler’s New York City monument to the success of his burgeoning beverage empire. The construction of the 24-story skyscraper was a statement of national commercial dominance, following the construction of other Candler-named buildings across the country.

A Masterpiece of Beaux-Arts Architecture

The building is a prime example of Beaux-Arts architecture, characterized by its classical symmetry, grand scale, and intricate detailing. Located strategically on 42nd Street near Seventh Avenue, it stands as a historic anchor at the southern end of Times Square, a district known for its blend of historic theaters and modern commercial towers. Its enduring presence in the Theater District is a testament to the quality of its 1912 construction. The shift from a monument of early 20th-century commerce to a 21st-century hotel, via a brief but critical period as a Humanitarian Relief Center, underscores the dynamic and ever-evolving nature of New York City real estate. The future 265-room hotel marks the next chapter for this iconic address, ensuring 220 West 42nd Street will remain a focal point of Midtown Manhattan for years to come.

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