Marcus & Millichap’s IPA Capital Markets Arranges $75 Million Financing for Midtown Manhattan Office-to-Residential Conversion Project
September 19 2024 - 4:15PM
Business Wire
IPA Capital Markets, a division of Marcus & Millichap
(NYSE:MMI), specializing in capital markets services for major
private and institutional clients, has secured $75 million in
acquisition financing for the former Pfizer headquarters in New
York City. Located at 219 E 42nd St., the property will be combined
with the adjacent building at 235 E 42nd St. and converted into a
free-market, Class-A, luxury multifamily apartment building.
“When these two buildings are combined, it will add more than
800 units to the project totaling to over 1,400 units, making it
the largest office-to-residential conversion in New York City’s
history,” said Max Herzog, IPA Capital Markets.
The New York-based IPA Capital Markets team of Herzog, Marko
Kazanjian, Andrew Cohen and Max Hulsh secured the financing with
Northwind Group on behalf of David Werner Real Estate Investments
and Metro Loft Management.
Herzog added: “The shortage of free-market multifamily units in
Manhattan, coupled with David Werner’s acquisition of the property
at a favorable basis and Metro Loft’s expertise in
office-to-residential conversions helped our team generate
significant interest from lenders in providing the acquisition
bridge loan. This led to IPA Capital Markets managing a smooth and
efficient financing process, ultimately securing strong terms for
DWREI and Metro Loft.”
Located in Midtown East, the 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 with 660 units ranging from studios to
three-bedroom loft-style layouts.
About IPA Capital Markets
IPA Capital Markets is a division of Marcus & Millichap
(NYSE: MMI). IPA Capital Markets provides major private and
institutional clients with commercial real estate capital markets
financing solutions, including debt, mezzanine financing, preferred
and joint venture equity, and sponsor equity. For more information,
please visit institutionalpropertyadvisors.com/capital-markets
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm
specializing in commercial real estate investment sales, financing,
research and advisory services with offices throughout the United
States and Canada. As of December 31, 2023, the company had 1,783
investment sales and financing professionals in over 80 offices who
provide investment brokerage and financing services to sellers and
buyers of commercial real estate. The company also offers market
research, consulting and advisory services to clients. Marcus &
Millichap closed 7,546 transactions in 2023, with a sales volume of
approximately $43.6 billion. For additional information, please
visit www.MarcusMillichap.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240919676375/en/
Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
Marcus and Millichap (NYSE:MMI)
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