NYC’s Largest Office-to-Resi Conversion Lands Financing
A former corporate headquarters will be combined with an adjacent Midtown building.
David Werner Real Estate Investments and Metro Loft Management, developers of a project involving the office-to-residential conversion of the former Pfizer headquarters building in New York City, have secured $75 million in acquisition bridge financing.
The property. located at 219 E. 42nd Street in Midtown Manhattan will be combined with the adjacent building at 235 E. 42nd Street. Together, they will be converted into a free-market, Class A luxury multifamily apartment building.
Marcus & Millichap’s IPA Capital Markets division, which specializes in capital markets services for major private institutional clients, secured the acquisition financing.
The largest NYC conversion in history
In a prepared statement, an IPA Capital Markets official explained that by combining the two buildings, 800 residential units will be added to bring the total to more than 1,400 units, representing the largest office-to-residential conversion in New York City history.
The official went on to remark that Manhattan’s shortage of free-market multifamily apartments, when combined with the favorable acquisition terms garnered by David Werner and the office-to-residential expertise of Metro Loft, enabled the IPA Capital Markets team to stir up substantial lender interest. That in turn allowed IPA Capital Markets to foster a seamless and effective financing process, leading to securing excellent terms for David Werner Real Estate Investments and Metro Loft Management.
READ ALSO: NYC and NJ Apartments in High Demand
Situated in Midtown East, the former Pfizer headquarters property will be converted from a 10-story, 291,000-gross-square-foot office building into a 29-story, approximately 540,000-square-foot, luxury multifamily rental property. The residences will range in size from studio apartments to three-bedroom, loft-style-layout apartment homes.
Leading the New York City-based IPA Capital Markets team were Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh. The team secured the financing with Northwind Group on behalf of DWREI and Metro Loft Management. Earlier this month, the Corcoran Group initiated sales at The Perrie, a condominium in Manhattan.
