Marcus & Millichap’s IPA Capital Markets Arranges $75 Million Financing for Midtown Manhattan Office-to-Residential Conversion Project
IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI), has secured $75 million in acquisition financing for the former Pfizer headquarters in New York City. The property at 219 E 42nd St. will be combined with the adjacent building at 235 E 42nd St. and converted into a luxury multifamily apartment building. The project will create over 1,400 units, making it the largest office-to-residential conversion in New York City's history.
The 10-story, 291,000-gross-square-foot office building will be transformed into a 29-story, 540,000 square-foot luxury rental property with 660 units. The New York-based IPA Capital Markets team secured the financing with Northwind Group on behalf of David Werner Real Estate Investments and Metro Loft Management. The project aims to address the shortage of free-market multifamily units in Manhattan.
IPA Capital Markets, una divisione di Marcus & Millichap (NYSE:MMI), ha ottenuto 75 milioni di dollari per il finanziamento dell'acquisizione del precedente quartier generale della Pfizer a New York. L'immobile situato al 219 E 42nd St. sarà unito all'edificio adiacente al 235 E 42nd St. e convertito in un palazzo di lusso con appartamenti multifamiliari. Il progetto creerà oltre 1.400 unità, rendendolo la più grande conversione di uffici in residenziale nella storia di New York City.
L'edificio per uffici di 10 piani e 291.000 piedi quadrati sarà trasformato in una proprietà di lusso per affitti di 29 piani e 540.000 piedi quadrati con 660 unità. Il team di IPA Capital Markets, con sede a New York, ha ottenuto il finanziamento con il Northwind Group per conto di David Werner Real Estate Investments e Metro Loft Management. Il progetto mira a rispondere alla scarsità di unità multifamiliari sul mercato libero a Manhattan.
IPA Capital Markets, una división de Marcus & Millichap (NYSE:MMI), ha asegurado 75 millones de dólares en financiamiento para la adquisición de la antigua sede de Pfizer en la ciudad de Nueva York. La propiedad ubicada en 219 E 42nd St. se combinará con el edificio adyacente en 235 E 42nd St. y se convertirá en un edificio de lujo de apartamentos multifamiliares. El proyecto creará más de 1,400 unidades, convirtiéndose en la mayor conversión de oficinas en residenciales en la historia de la ciudad de Nueva York.
El edificio de oficinas de 10 pisos y 291,000 pies cuadrados será transformado en una propiedad de alquiler de lujo de 29 pisos y 540,000 pies cuadrados con 660 unidades. El equipo de IPA Capital Markets, con sede en Nueva York, aseguró el financiamiento con Northwind Group en nombre de David Werner Real Estate Investments y Metro Loft Management. El proyecto tiene como objetivo abordar la escasez de unidades multifamiliares en el mercado libre en Manhattan.
IPA Capital Markets는 Marcus & Millichap(NYSE:MMI)의 한 부서로, 뉴욕시에 있는 구 Pfizer 본사에 대해 7500만 달러의 인수 금융을 확보했습니다. 219 E 42nd St.에 위치한 이 부동산은 인접한 235 E 42nd St.와 결합되어 고급 다가구 아파트 건물로 전환될 것입니다. 이 프로젝트는 1400개 이상의 유닛을 창출하여 뉴욕시 역사상 가장 큰 사무실에서 주택으로의 전환을 이룰 것입니다.
10층 규모의 총 291,000 평방피트의 사무실 건물은 29층 540,000 평방피트의 고급 임대 부동산으로 변형되어 660개 유닛을 포함하게 됩니다. 뉴욕에 기반을 둔 IPA Capital Markets 팀은 David Werner Real Estate Investments와 Metro Loft Management를 대신하여 Northwind Group과 함께 자금을 확보했습니다. 이 프로젝트는 맨해튼에서 자유 시장의 다가구 유닛 부족 문제를 해결하는 것을 목표로 하고 있습니다.
IPA Capital Markets, une division de Marcus & Millichap (NYSE:MMI), a obtenu un financement d'acquisition de 75 millions de dollars pour l'ancienne siège de Pfizer à New York. La propriété située au 219 E 42nd St. sera combinée avec le bâtiment adjacent au 235 E 42nd St. et convertie en un immeuble d'appartements multifamiliaux de luxe. Le projet créera plus de 1 400 unités, ce qui en fera la plus grande conversion de bureaux en résidentiel dans l'histoire de New York City.
Le bâtiment de bureaux de 10 étages et 291 000 pieds carrés sera transformé en une propriété locative de luxe de 29 étages et 540 000 pieds carrés avec 660 unités. L'équipe d'IPA Capital Markets basée à New York a sécurisé le financement avec Northwind Group au nom de David Werner Real Estate Investments et Metro Loft Management. Le projet vise à répondre à la pénurie d'unités multifamiliales sur le marché libre à Manhattan.
IPA Capital Markets, eine Abteilung von Marcus & Millichap (NYSE:MMI), hat 75 Millionen Dollar für die Finanzierung der Übernahme des ehemaligen Pfizer-Hauptsitzes in New York City gesichert. Die Immobilie in der 219 E 42nd St. wird mit dem angrenzenden Gebäude in der 235 E 42nd St. kombiniert und in ein Luxus-Multifamilienwohngebäude umgewandelt. Das Projekt wird über 1.400 Einheiten schaffen und somit die größte Umwandlung von Büros in Wohnraum in der Geschichte von New York City darstellen.
Das 10-stöckige Bürogebäude mit einer Bruttofläche von 291.000 Quadratfuß wird in eine 29-stöckige Luxus-Mietimmobilie mit 540.000 Quadratfuß umgewandelt, die 660 Einheiten umfasst. Das in New York ansässige Team von IPA Capital Markets hat die Finanzierung in Zusammenarbeit mit der Northwind Group im Auftrag von David Werner Real Estate Investments und Metro Loft Management gesichert. Ziel des Projekts ist es, dem Mangel an freimarktlichen Mehrfamilieneinheiten in Manhattan entgegenzuwirken.
- Secured $75 million in acquisition financing for a major real estate project
- Project will create over 1,400 units, addressing Manhattan's housing shortage
- Largest office-to-residential conversion in New York City's history
- Transformation from 291,000 sq ft office to 540,000 sq ft luxury rental property
- None.
Insights
This $75 million financing for a major office-to-residential conversion in Midtown Manhattan is a significant development in the New York real estate market. The project's scale, converting the former Pfizer HQ into over 1,400 luxury apartments, addresses the critical shortage of free-market housing in Manhattan. This move aligns with the growing trend of repurposing underutilized office spaces in prime locations, potentially setting a precedent for future large-scale conversions.
The involvement of established players like David Werner Real Estate Investments and Metro Loft Management adds credibility to the project. The successful securing of financing in the current tight credit market is noteworthy, indicating strong lender confidence in the project's viability and the expertise of the development team. This deal could spark increased investor interest in similar conversion opportunities, potentially reshaping Manhattan's real estate landscape and addressing housing supply issues.
Marcus & Millichap's (NYSE:MMI) involvement in this high-profile deal through its IPA Capital Markets division showcases the company's strong position in the commercial real estate financing sector. This $75 million transaction will likely contribute positively to MMI's revenue and potentially boost its market reputation, which could have a favorable impact on its stock performance.
Investors should note that while this single deal may not significantly alter MMI's financial outlook, it demonstrates the company's ability to execute large, complex transactions in a challenging market environment. The company's diversified services across investment sales, financing and advisory positions it well to capitalize on evolving real estate trends, such as the office-to-residential conversion wave. With 7,546 transactions closed in 2023 and a sales volume of $43.6 billion, MMI shows robust operational performance, which this latest deal further reinforces.
This project represents a significant shift in urban development strategies, addressing the dual challenges of office vacancy and housing shortages in major cities. Converting the former Pfizer headquarters into 660 luxury apartments exemplifies adaptive reuse at a grand scale, potentially setting a new benchmark for urban revitalization efforts.
The project's location in Midtown East is strategic, likely to contribute to the area's 24/7 vitality by introducing a substantial residential population. This could have ripple effects on local businesses, public services and community dynamics. However, it's important to monitor the impact on affordable housing availability and neighborhood character. While adding free-market units helps overall supply, the luxury focus may not directly address affordability concerns. City planners and policymakers should consider incentivizing a mix of housing types in future conversions to ensure balanced urban growth and maintain socioeconomic diversity in Manhattan's core.
“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
Herzog added: “The shortage of free-market multifamily units in
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
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Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
Source: Marcus & Millichap
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