Probably the most-watched office-to-residential conversions in Manhattan secured the financing to maneuver ahead.
A three way partnership of Nathan Berman’s MetroLoft and Idan Ofer’s Quantum Pacific Realty landed a $170 million mortgage for the redevelopment of 767 Third Avenue in Midtown East, the Business Observer reported. It’s at the very least the second mortgage supplied on the website by the U.S. arm of Financial institution Hapoalim.
“Our lending philosophy has at all times centered on backing skilled sponsors, investing in long-term relationships, and supporting initiatives that contribute significant worth to the communities they serve,” BHI chief govt officer Gil Karni mentioned in an announcement.
The builders didn’t instantly reply to requests for remark.
The Actual Deal reported in January 2025 that MetroLoft partnered with Quantum Pacific on the $88 million buy of the property from Sage Realty. BHI supplied a $55 million bridge mortgage to finance the acquisition.
Builders filed plans for the undertaking final summer time, which embody turning the 282,000-square-foot workplace constructing right into a 337-unit residence constructing with 68,000 sq. toes of retail area. Residential facilities are anticipated to incorporate a health heart, a sports activities simulator, a spa, remedy rooms, coworking area and a rooftop lounge.
The 40-story property, in-built 1981, is eligible for a residential conversion underneath the Metropolis of Sure handed in December 2024. The laws modified eligibility from buildings constructed earlier than 1961 to these constructed by 1991, making conversions of buildings equivalent to 767 Third Avenue potential.
Whereas Ofer and Berman are full steam forward at 767 Third Avenue, they’re already cooking up their subsequent conversion.
Two months in the past, they have been in contract to purchase the workplace constructing at 1 Whitehall Road within the Monetary District for just north of $100 million, sources informed The Actual Deal. The vendor is LoanCore Capital, the Greenwich, Connecticut-based debt fund that foreclosed on the constructing in December and took it over from the Chetrit Group.
Ofer, the Israeli billionaire inheritor to a transport fortune, teamed up with Berman final yr to purchase the workplace constructing at 101 Greenwich Road for $105 million. The companions landed a $220 million construction loan from Apollo in January to transform the constructing into 614 residences.
They’re additionally partnering on 845 Third Avenue, a 411-unit conversion.
Learn extra
Nathan Berman to convert 767 Third Ave office to resi
Nathan Berman, Idan Ofer paying $100M for next office-to-resi conversion
Idan Ofer, Nathan Berman nab 101 Greenwich loan
