Madison Realty Capital Closes $720M Construction Loan for Pfizer HQ Conversion
The loan is the largest secured for a New York City office-to-resi project thus far
By Andrew Coen May 19, 2025 7:00 am
reprints
The much-anticipated construction financing to fund Metro Loft and David Werner’s office-to-residential conversion of the former Pfizer’s former headquarters in Midtown Manhattan has crossed the finish line.
The joint venture secured a $720 million loan from Madison Realty Capital to execute New York City’s largest office-to-resi project to date, featuring 1,602 rental apartments across two buildings. It also marks the largest loan secured for a New York City office-to-resi project.
Traded first reported the loan.
IPA Capital Markets, a division of Marcus & Millichap, arranged the transaction, with a team consisting of Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh.
“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,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement. “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.”
Redevelopment of the site at 219 and 235 East 42nd Street property is underway and slated for completion in 2027. It was formerly the global headquarters of Pfizer before the pharmaceutical giant’s relocation to Tishman Speyer’s Spiral office tower at Hudson Yards in late 2022.
The 1,602 units at the former Pfizer headquarters will –upon completion— surpass Metro Loft’s 1,300 units it’s developing for another office-to-resi conversion at 25 Water Street in Lower Manhattan.
Nathan Berman, founder and CEO of Metro Loft, said in a statement he was “thrilled to reach this major milestone in bringing our vision for this transformative development to life.”
Twenty five percent of the units will be designated as affordable under New York City’s Affordable Housing from Commercial Conversions Tax Incentive Benefits program. The project will also include more than 100,000 square feet of amenity space and ground floor retail.
“We are proud to collaborate with Metro Loft, a valued partner, on the transformation of the former Pfizer headquarters, a project that reflects our shared vision and commitment to revitalizing iconic New York real estate”, David Werner, president of David Werner Real Estate Investments, said in a statement.
IPA’s Herzog said in a statement that the Werner and Metro Loft “put together a best-in-class conversion project” that upon completion “will set a new standard for conversions, helping to meet the demand for Class A multifamily housing in New York City.”
The deal closed two weeks after The Promote first reported Metro Loft and Werner were nearing a more than $700 million construction loan to repurpose the 774,000-square-foot property.
Andrew Coen can be reached at acoen@commercialobserver.com
