N
athan Berman and Israeli billionaire Idan Ofer have partnered on a major office conversion project at 767 Third Avenue, marking what could be the first of its kind under the City of Yes legislation. Metro Loft Management, led by Berman, joined forces with Quantum Pacific, owned by Ofer, to purchase the roughly 330,000-square-foot building for $88 million from Sage Realty.

    The 40-story building, developed in 1981, was previously ineligible for residential conversion due to its age. However, the City of Yes legislation, passed in December, has expanded eligibility to buildings constructed before 1991, making conversions like this one possible. The city's 467-M tax incentive is also creating more opportunities for developers.

    The purchase closed last week with a $55 million loan from Bank Hapoalim. Berman's company is working on several large conversion projects across Manhattan, including the redevelopment of the former Pfizer headquarters at 235 East 42nd Street, which will deliver 1,500 apartments and become the largest office-to-residential conversion ever.