Manhattan Building Gets $75M Loan to Fund 'Largest Conversion Project in NYC History'
The loan will help transition to the office into a larger multifamily space.
A Manhattan property has acquired a $75 million mortgage loan, which will help transition the building from an office into a much bigger multifamily space.
The current nine-story building is under the ownership of a joint venture, consisting of affiliates of both Metro Loft Management, headed by Nathan Berman, and David Werner Real Estate Investments. The property, at 219 East 42nd Street, was also the former headquarters of pharmaceutical giant, Pfizer.
The senior mortgage acquisition predevelopment loan was provided by Northwind Group. According to the private equity-based firm, the “property will be part of the largest conversion project in NYC history.”
Specifically, it said that the plans are to redevelop the office into a Class A multifamily space, containing 29 stories, and as many as 660 units.
“We’re pleased to be working with Northwind as we embark with David Werner, an industry leader, on what we are confident will be another successful conversion of antiquated office space into modern residences,” Ran Eliasaf, founder and managing partner of Northwind, said in a statement.
“We are pleased to provide this financing to David Werner and Nathan Berman. This office building, located in the heart of Midtown East, is fully vacated and primed for an as-of-right conversion, which will be part of the largest office to residential conversion in NYC history. The attractive basis and top-tier sponsorship with deep experience and a clear executable business plan fit well within our debt fund’s investment thesis.”
The loan marks the second one that David Werner has secured from Northwind in the past month. Previously, the debt fund manager granted the borrower a $95 million acquisition loan for the 515,000 office space at 100 Wall Street.
Year-to-date, Northwind has closed $800 million worth of loans in not only New York City but other major regions in the country too.
Northwind said that going forward NYC’s housing shortage presents attractive investment opportunities.