IPA Capital Markets, a division of Marcus & Millichap, specializing in capital markets services for major private and institutional clients, announced the closing of a $720 million loan to a joint venture between Metro Loft Developers and David Werner Real Estate Investments for the development and conversion of the former Pfizer headquarters consisting of two adjacent and connected office buildings. Max Herzog, Marko Kazanjian, Andrew Cohen, and Max Hulsh of IPA Capital Markets secured the financing with Madison Realty Capital.
“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,” said Josh Zegen, managing principal and co-founder of Madison Realty Capital. “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.”
“David Werner Real Estate Investments and Metro Loft put together a best-in-class conversion project that enabled our IPA Capital Markets team to facilitate a competitive financing process,” said Herzog. “Madison Realty Capital demonstrated professionalism from the outset and executed flawlessly resulting in a smooth and efficient closing. Once completed, this office-to-residential conversion will set a new standard for conversions, helping to meet the demand for Class A multifamily housing in New York City.”
Nathan Berman, founder and chief executive officer of Metro Loft, added, “We’re thrilled to reach this major milestone in bringing our vision for this transformative development to life. We are grateful to our partners at David Werner Real Estate Investments and to our lenders at Madison Realty Capital for their confidence and commitment.”
Upon completion, the Former Pfizer Headquarters property will total 1,602 luxury rental apartments, 25% of which will be designated affordable under New York City’s Affordable Housing from Commercial Conversions Tax Incentive Benefits program. It will also include over 100,000 square feet of amenities and approximately 30,000 square feet of ground-floor retail space. Across both buildings, residences will feature high-end finishes such as custom built-in kitchens with premium appliances, stone countertops, bespoke bathrooms with deep soaking tubs, in-unit washer/dryers, and integrated smart-home technology.
“We are proud to collaborate with Metro Loft, a valued partner, on the transformation of the former Pfizer headquarters, a project that reflects our shared vision and commitment to revitalizing iconic New York real estate,” said David Werner, president of David Werner Real Estate Investments. “It was a pleasure to close a loan with Madison Realty Capital. They are an accurate and efficient lender, while providing flexibility where needed and the surety of execution. Their proactive involvement and professional coordination were instrumental in achieving our objectives. I am deeply appreciative of the entire team at Madison Realty Capital, and I look forward to working with them again in the near future.”
Fried Frank, led by Mike Werner, represented the borrower and Kriss & Feuerstein, led by Jerry Feuerstein, represented the lender.
