- Northwind Group provided Metro Loft and David Werner with a $135M loan for their office-to-residential conversion at 235 East 42nd Street in Midtown Manhattan.
- This is Northwind’s second loan for the project, following a $75M loan last summer for a related building at 219 East 42nd Street.
- The development will create approximately 1.5K rental units, making it the largest office-to-residential conversion in New York City.
- Metro Loft is a major player in the conversion space, also leading a 1.3K-unit redevelopment at 25 Water Street in the Financial District.
David Werner and Metro Loft Management secured $135M in financing from Northwind Group for their massive conversion of the former Pfizer HQ at 235 East 42nd Street, according to The Real Deal.
Loan Details
The loan is backed by the fee interest in the property and was arranged by a Newmark team including Adam Spies and Jordan Roeschlaub.
This marks Northwind’s second loan for the project—the lender previously provided $75M for a related building at 219 East 42nd Street, part of the developers’ broader transformation plan.
Midtown Transformation
Metro Loft, led by Nathan Berman, reached a deal nearly a year ago to convert the former Pfizer HQ into 1.5K rental units. Notably, this project is set to become the largest office-to-residential conversion in New York City.
David Werner originally acquired the 33-story 235 East 42nd Street building for $407M after Pfizer relocated to Tishman Speyer’s Spiral. He also purchased the 10-story 219 East 42nd Street in partnership with Alexandria Real Estate Equities (ARE) but later bought out the life sciences REIT.
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Bigger Footprints
Metro Loft has cemented itself as a leader in NYC office-to-resi conversions, with another 1.3K-unit transformation underway at 25 Water Street in the Financial District.
Meanwhile, Northwind Group continues to expand its lending portfolio in the conversion space. The firm previously acquired the $100M A-note on the Hudson Hotel’s residential redevelopment, further solidifying its role in the financing of major transformation projects.
What’s Next?
With financing secured, Metro Loft and Werner’s redevelopment of the former Pfizer HQ is moving forward. This continues a growing trend of converting obsolete office space into much-needed housing.
Expect more large-scale conversions as investors and developers seek opportunities in New York City’s evolving real estate market.h Cooper Union’s claim that RFR failed to meet its financial obligations.
What’s Next?
With RFR removed, Cooper Union will assume full management of the Chrysler Building. The school plans to implement a long-term strategy to improve tenant experiences and maximize the property’s value.
Look for further developments as Cooper Union repositions the Chrysler Building and the New York real estate community watches for potential new investors interested in the historic landmark.
