BHI Lends $170M on Third Avenue Office-to-Resi Conversion

A joint venture between Quantum Pacific Realty and Metro Loft has landed $169.5 million of construction financing to execute an office-to-residential conversion in Midtown East, Commercial Observer can first report.

BHI provided the loan for the sponsorship’s planned transformation of 767 Third Avenue from a 282,000 square-foot office building into 337 apartment units with 68,000 square feet of retail space. Nathan Berman’s Metro Loft and Idan Ofer’s Quantum Pacific filed plans for the office-to-resi conversion in August, as CO previously reported. 

“Manhattan continues to stand at the center of global real estate investment and development activity, and at BHI we view supporting transformational projects in the city as core to our long-term vision for strategic lending,” Ilana Druyan, senior vice president at BHI, said in a statement. 

BHI, the U.S branch of Bank Hapoalim, provided a $55 million bridge loan in December 2024 to fund Quantum and Metro Loft’s $88 million acquisition of the building from Sage Realty, CO reported at the time. Metro Loft also secured an $88 million senior term bridge loan from BHI for pre-development financing for another office-to-resi conversion at nearby 845 Third Avenue in March 2026. 

Quantum Pacific Realty and Metro Loft are planning amenities at 767 Third that include a  fitness center, a sports simulator, a spa, treatment rooms, coworking space and a rooftop lounge.

“Our lending philosophy has always centered on backing experienced sponsors, investing in long-term relationships, and supporting projects that contribute meaningful value to the communities they serve,” Gil Karni, CEO of  BHI, said in a statement.  

Quantum Pacific Realty and Metro Loft  did not immediately return requests for comment.Andrew Coen can be reached at acoen@commercialobserver.com