On Tuesday morning, a building conversion project in Midtown Manhattan faced a major setback due to structural damage. A 37-story office building on East 42nd Street, intended to become a residential complex, partially collapsed.

According to Cliff Johnsen, a representative of the Local 638 steamfitters union, the building began to fail as the beams bent and several floors started sagging. Workers immediately evacuated the building located at 235 East 42nd Street, close to Grand Central Terminal and the United Nations.

A quick emergency response ensued, with nearby offices and hotels evacuated. Traffic in the area came to a halt. Officials found severe structural damage between the 21st and 26th floors but reported no injuries. To ensure safety, they established a restricted area, displacing local businesses and leaving tourists stranded.

The cause of the structural failure remains under investigation. The incident has stalled what was the city’s largest effort to repurpose empty office buildings into residential spaces. This conversion project aimed to alleviate New York City’s housing shortage.

The incident on Tuesday has put the project’s future in question. Inspectors are now tasked with determining the cause, developing a repair strategy, and assessing the full scope of the problem.