More Midtown Apartments

Coming at Former Pfizer HQ

NEW YORK—IPA Capital Markets reported on May 19 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 in Midtown Manhattan into housing.

The financing is believed to be the largest office-to-residential project financing in the city’s history.

Upon completion, the 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 more than 100,000 s/f of amenities and approximately 30,000 s/f of ground-floor retail space. Max Herzog, Marko Kazanjian, Andrew Cohen, and Max Hulsh of IPA Capital Markets secured the financing with Madison Realty Capital.

Josh Zegen, managing principal and co-founder of Madison Realty Capital, said “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.

The $720-million loan, considered the largest financing ever secured for an office-to-residential conversion in New York City, aims to solve the mismatch of outdated office buildings and a lack of housing.

Located at 219 and 235 East 42nd St. in the Midtown East neighborhood of Manhattan, the property, which is now under construction, is expected to be completed in Q4 of 2027.

Pfizer relocated from its space on East 42nd St. to 11 floors of an office tower located at 66 Hudson Blvd. (The Spiral) at Hudson Yards in April 2023. Pfizer had maintained its global headquarters at its East 42nd St. location since 1961.

Nearly 71,000 residences have either been approved, remain under construction or are in the planning phase, which is more than triple the number from three years ago, according to a February report from RentCafe. New York, which is the country’s largest office market, has more than 8,300 offices set to be converted into apartments in 2025, The New York Times reported earlier this month.

Published: May 21, 2025

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