Real-estate company Metro Loft Developers and David Werner Real Estate Investments, a commercial real-estate investment company, have obtained a $720m loan for the development of a multifamily building in Manhattan, US.
The former Pfizer headquarters property, located at 219 and 235 East 42nd Street in Manhattan’s Midtown East area, is set to be transformed into a residential complex with 1,602 units.
Construction is in progress, with completion anticipated by the fourth quarter (Q4) of 2027.
Madison Realty Capital, a real-estate private equity company, has originated the loan for this project.
Madison Realty Capital managing principal and co-founder Josh Zegen said: “By structuring flexible financing for the largest office-to-residential conversion in New York City’s history, we are enabling a new benchmark for luxury rental housing in Midtown Manhattan.
“Metro Loft’s track record executing complex office-to-residential conversions in New York City, combined with David Werner Real Estate Investments’ deep experience with high-profile, institutional assets, makes them an ideal sponsorship team for a project of this scale.”
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By GlobalDataMax Herzog, Marko Kazanjian, Andrew Cohen, and Max Hulsh of IPA Capital Markets, a division of Marcus & Millichap that engages in capital markets services, helped garner the financing with Madison Realty Capital.
The development will offer rental apartments, with 25% designated as affordable housing under New York City’s Affordable Housing from Commercial Conversions Tax Incentive Benefits programme.
This project will feature more than 100,000ft² of amenities and around 30,000ft² of ground-floor retail space.
The residences are planned to include custom-built kitchens, stone countertops, and integrated smart-home technology, catering to the demand for quality rental housing in an area encompassed by its Class A office spaces.
The property’s location in Midtown East, with over 350ft of frontage along 42nd Street, is stated to enhance visibility and access.
The site is situated near Grand Central Terminal and business centres, as well as retail, dining, and cultural destinations.
Fried Frank provided legal representation for the borrower, led by Mike Werner, while Kriss & Feuerstein, led by Jerry Feuerstein, represented the lender.
In January 2025, Madison Realty Capital provided a $107.6m loan to an affiliate of Fort Partners for the Seaway North at The Surf Club development, an ultra-luxury condominium project within Miami’s Surfside neighbourhood.
