MAG Partners was selected by Penn South, the affordable housing cooperative in Chelsea, to develop 335 Eighth Avenue into a mixed income apartment building with ground floor commercial space, including a grocery store operated by Lidl.  The new 190-unit building broke ground in October 2023 and will be developed under the Affordable NY Program with thirty percent of its units reserved for low- and middle-income New Yorkers.

The redevelopment will replace the aging existing building with a modern, contextual seven-story building that is about 200,000 square feet, designed by renowned local architects COOKFOX.  At the heart of Penn South, the design seeks to bridge the historical character of Chelsea, 21st century visions of urban living and contemporary aspirations for a new building that supports sustainable and healthy living.