Madison Realty Capital Lends $480M on 1740 Broadway Office-to-Resi Conversion
By Andrew Coen June 18, 2026 11:24 am
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Yellowstone Real Estate Investments has secured a $480 million loan to convert a Midtown Manhattan office building at 1740 Broadway into luxury apartments and condominiums.
Madison Realty Capital originated the loan for the transformation of the 27-story office property between West 55th and West 56th Streets into a 420-unit residential project, the lender announced Thursday morning. The project, which will lead to the creation of 238 apartments and 182 condos, is slated for completion in the third quarter of 2029, according to Madison Realty Capital.
The 1740 Broadway loan closed on the heels of Madison Realty Capital executing another office-to-resi financing of $720 million at the former Pfizer headquarters site at 219 and 235 East 42nd Street in May 2025, as CO previously reported.
“1740 Broadway is a prime office-to-residential conversion that checks every box with strong sponsorship, a great location, and robust demand in Midtown Manhattan for both for-sale and rental housing” Josh Zegen, a co-founder and managing principal of Madison Realty Capital, said in a statement. “We were able to leverage our experience in this strategy having provided $720 million for the conversion of the former Pfizer headquarters, as well as our existing relationship with Yellowstone as a repeat sponsor, to deliver a complex financing solution on an expedited basis.”
The Promote was first to report the loan.
Ackman-Ziff negotiated the financing with a team consisting of Jason Krane, Russ Schildkraut and Simon Ziff.
The 1740 Broadway office-to-resi project will include more than 60,000 square feet of amenity space, including a 22,000-square-foot sports club, a spa with a 60-foot lap pool, a speakeasy bar, a lounge and a sun deck. The property will also feature 18,055 square feet of ground-floor retail space currently leased to Sweetgreen, Sugarfish and Citibank.
Yellowstone Real Estate Investments did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.
