I
n a major coup for New York City's real estate market, IPA Capital Markets has arranged a $720 million loan to convert the former Pfizer headquarters into a luxury residential complex. This deal marks the largest office-to-residential conversion loan ever closed in NYC.

    The financing was secured with Madison Realty Capital and will support the redevelopment of two adjacent buildings at 219 and 235 East 42nd Street in Midtown East by Metro Loft Developers and David Werner Real Estate Investments. The project involves converting the properties into a luxury rental complex with 1,602 units, including 25% affordable housing.

    "This financing enables a new standard for luxury rentals in Midtown Manhattan," said Josh Zegen of Madison Realty Capital. "Metro Loft's expertise in office-to-residential conversions and David Werner's experience with high-profile assets make them an ideal team."

    The IPA Capital Markets team led the financing effort, navigating a competitive process to secure the loan. The development will feature high-end finishes, over 100,000 square feet of amenities, and 30,000 square feet of retail space.

    "We're thrilled to reach this milestone in bringing our vision for this transformative project to life," said Nathan Berman of Metro Loft. "We appreciate the confidence and commitment shown by our partners and lenders."

    The conversion is underway, with completion expected in Q4 2027. This historic financing reflects growing demand for office-to-residential conversions in urban centers, driven by shifting market trends post-pandemic.

    Madison Realty Capital's Josh Zegen noted that Metro Loft's track record and David Werner's experience made them an ideal team for the project. IPA Capital Markets' Max Herzog added that the competitive process was facilitated by the joint venture's best-in-class conversion project and Madison Realty Capital's flawless execution.