Wedoany.com Report-May 27, Metro Loft Developers and David Werner Real Estate Investments have secured a $720 million loan to transform the former Pfizer headquarters at 219 and 235 East 42nd Street in Manhattan’s Midtown East, New York, into a 1,602-unit residential complex. Construction is underway, with completion expected by the fourth quarter of 2027.

Completion is forecast by Q4 2027.

The loan was provided by Madison Realty Capital, a real-estate private equity firm. Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, stated: “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.” He highlighted the expertise of Metro Loft in office-to-residential conversions and David Werner’s experience with high-profile assets as key to the project’s success.

The financing was facilitated by Max Herzog, Marko Kazanjian, Andrew Cohen, and Max Hulsh of IPA Capital Markets, a division of Marcus & Millichap. Legal representation for the borrowers was provided by Fried Frank, led by Mike Werner, while Kriss & Feuerstein, led by Jerry Feuerstein, represented the lender.

The development will feature rental apartments, with 25% designated as affordable housing under New York City’s Affordable Housing from Commercial Conversions Tax Incentive Benefits program. The complex will include over 100,000 square feet of amenities and approximately 30,000 square feet of ground-floor retail space. Apartments will be equipped with custom kitchens, stone countertops, and smart-home technology, meeting the demand for high-quality rentals in Midtown East’s business district.

Located near Grand Central Terminal, the property benefits from over 350 feet of frontage along 42nd Street, offering excellent visibility and access to retail, dining, and cultural attractions. The project aligns with the area’s prominence as a hub for premium office spaces, enhancing its appeal for residents.

This initiative represents a significant milestone in urban redevelopment, converting a commercial landmark into a modern residential community. By incorporating affordable housing and extensive amenities, the project supports New York City’s goals for inclusive and sustainable urban growth.