InterVest capital partners has made history in New York City, with its snagging of a $867 million debt package that will support an office-to-residential transformation in Lower Manhattan.
The deal includes a $778.6 million construction loan from a global alternative investment manager, with $88.4 million in C-PACE financing coming from Petros. The first of the two marks a record loan issued in NYC for an individual office-to-residential conversion.
Walker & Dunlop arranged both pieces of debt.
The package applies to 111 Wall Street in the Financial District. The plans are to transform the vacant 24-story office tower into a 30-story luxury residential community with approximately 1,568 rental units. About 25 percent will be designated as affordable.
The 899,000 rentable square feet redevelopment will feature 100,000 square feet in luxury amenities that include a spa, golf simulator, wellness and recreation, bowling alley, fitness center, coworking spaces, basketball courts, padel courts, jogging track and social lounges. Plus, there will be 7,000 square feet of ground retail space.
The redo fits under InterVest's value-add strategy, where it's targeting urban areas. Some other projects that the developer has underway include a seven-building 504-unit rent stabilized portfolio in the Bronx, a 631-unit Class A development in Miami and a 135-unit luxury condo project in Manhattan.
“With office vacancies still elevated post-pandemic, we are seeing developers and global capital providers increasingly turning to residential conversions as a practical path forward,” said David Stolly, senior managing director at Walker & Dunlop.
“Manhattan’s apartment demand remains exceptionally strong, and projects like 111 Wall Street address both the growing need for housing and the repositioning of outdated, underutilized office assets. This project underscores continued investor confidence in large-scale adaptive reuse in core urban markets."
In the year-to-date through August, 4.1 million square feet across 15 office-to-residential conversions had started in Manhattan, according to a recent report from Cushman & Wakefield. This marks the highest level seen since 2008.
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