Manhattan’s Biggest Office-to-Resi Conversion Secures $135M
David Werner Real Estate Investments and Metro Loft Management will redevelop two buildings into more than 1,600 units.

David Werner Real Estate Investments and Metro Loft Management have obtained $135 million in first-mortgage financing for the redevelopment of a Manhattan office building, previously occupied by pharmaceutical giant Pfizer, into a residential property.
Redevelopment plans for the 33-story property, which is located at 235 E. 42nd St. in Midtown Manhattan, call for it to become a market-rate multifamily building. Upon completion, it will feature about 910 units along with retail and amenity space.
The new loan was originated by Northwind Group’s latest debt fund, NDF III, which formally launched in January 2025. The creation of the new fund came following a busy year for Northwind in 2024, when the company originated more than $1.1 billion in new loans.
In August of last year, Northwind Group provided a $75 million first mortgage loan to the same joint venture for 219 East 42nd St., an adjacent building. Together the properties will be converted into more than 1,600 multifamily units near Grand Central Terminal. At the time of the earlier financing, IPA Capital Markets said that the redevelopment is the largest office to residential conversion in the history of New York City. IPA facilitated that loan.
Dating from 1960, the glass and steel 235 E. 42nd St. had long been part of Pfizer’s presence in New York. However, in 2023, the company moved to the Spiral near Hudson Yards.
How feasible are these conversions?
With demand for apartments increasing and offices decreasing since the pandemic, office-to-residential conversions has been a hot topic in commercial real estate nationwide. The potential is there: more than 1.2 billion square feet of U.S. office buildings, or 15 percent of total stock, are quality residential conversion candidates, according to the Yardi Conversion Feasibility Index.
235 E. 42nd Street has a Conversion Feasibility Index of 89, according to CommercialEdge data. In calculating the index, CommercialEdge takes into account a sizable number of factors, including building characteristics, such total size and floor plate shape; location and placement, including walkability and transit access; and architectural and environmental considerations.
The index runs from 0 to 100, with a score between 90 and 100 being top conversation candidates, whose redevelopment would pose minimal challenges and offer a high probability of success. Buildings that score from 75 to 80 might not be ideal, but they still have strong potential for conversion.