One by one, the darkened, pock marked building facades on Murray Street in lower TriBeCa are being repaired and scrubbed — their raw interiors turned into full-floor condominiums with multimillion price tags. This transformation signals that TriBeCa’s popularity with young families has driven would-be homeowners to the neighborhood’s southernmost section, on or below Chambers Street.

Nearly a dozen residential projects are underway along Chambers Street, and an apartment tower anchored by a Whole Foods supermarket and a Barnes & Noble bookstore is going up one block south at 101 Warren Street. The Smyth TriBeCa, a hotel and condominium — a new project by hotelier Jason Pomeranc — will rise on West Broadway, at Chambers Street. Until recently, the now-empty lot housed a shoe store.

Two blocks south of that site, on Murray Street, a row of once-neglected, low-rise buildings are reinventing themselves as luxury residences. “If you take a look at the condition of the buildings, many are really in desperate need of renovation,” a managing partner of the Shvo Group, Shari Markoff, said of the Murray Street low-rises now getting facelifts. “Recently people have purchased them, seeing value in what could be done.”

Amy Miller Gross, 31, who with her husband owns a penthouse at 49 Murray Street, is also a Sotheby’s marketing agent for three full-floor condominiums and a duplex penthouse next door at 47 Murray Street. Prices there start at $2.7 million, she said.

“Every bit of TriBeCa has become valuable,” Ms. Miller Gross said.

Live-work lofts are also expected to bloom at 51 Murray Street. Meanwhile, at 53 Murray Street, four full-floor lofts have been sold. Two units in that building are still available for $2.5 million, and $3.3 million respectively.

Also ripe for a condominium conversion is a double-depth structure that stretches north to Warren Street, 55 Murray Street, is on the market for $16.8 million.

So far, investors haven’t appeared to be deterred by the three bars and the gentleman’s club that also inhabit the drag of Murray Street, which lies between West Broadway and Church Street. “It’s something we’d rather not have there, but it’s not a deal breaker,” Mr. Miller Gross, who is pregnant with twins, said of her strip club neighbor. “We have tons and tons of families living on the street.”

The street is home to some upscale establishments too, such as an Equinox gym, an Amish market, and two high-end rental buildings.

And the seedy bars and businesses that dot lower TriBeCa are operating on borrowed time, a senior director of sales Massey Knakal Realty Services, Peter DeCheser, said. “Those things are going away. Those leases, those liquor licenses, I don’t expect, will be renewed,” he said. “Soon everything in TriBeCa will be residential.”

Mr. DeCheser, who specializes in Lower Manhattan, said TriBeCa south of Chambers Street to Park Place is a relative deal — at least for now. Whereas developers pay $800 to $1,000 a square foot to scoop up a condominium-convertible building in central TriBeCa, they’ll pay about $500 to $600 a square foot south of Chambers Street.