Metro Loft Management and David Werner Real Estate Investments have secured more financing for their massive office-to-residential project at 219 and 235 East 42nd Street. Both IPA Capital Markets and Madison Realty Capital were responsible for securing the $720 million loan for the two joint venture partners. According to the firms, it was the largest funding ever issued in New York City for an office-residential transformation.
It wasn't made clear if the financing will support the construction, but IPA said that the groundbreaking for the project is underway, with completion aimed for the fourth quarter of 2027.
When delivered, the site will offer 1,602 luxury apartments. Of those, 25 percent will be set aside for affordable households. Some features include in-unit washer and dryers, smart-home technology and stone countertops.
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"Once completed, this office-to-residential conversion will set a new standard for conversions, helping to meet the demand for Class A multifamily housing in New York City," Max Herzog of IPA said, who helped secure the financing for both Metro and David Werner.
Previously, 219 and 235 East 42nd Street were given a $75 million senior mortgage acquisition predevelopment loan from Northwind Group. Additionally, Northwind has provided Metro and David Werner a $90 million loan to support another office-to-residential conversion in Manhattan, at 675 Third Avenue in Midtown South. The duo plans to turn the Class A office space into about 430 rental units.
Both 219 and 235 East 42nd Street, before the repurposing efforts, were vacant, with Pfizer at one point using the buildings as its headquarters.
In the first quarter, NYC's multifamily sector enjoyed $2.21 billion in dollar volume and 269 transactions, which were up by 62 percent and five percent year-over-year, according to a report from Ariel Property Advisors. Brooklyn stood out, with its $1.06 billion in volume, accounting for nearly half the total sales. Manhattan's transactions were up by five percent, while dollar volume was up by 36 percent year-over-year.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
