Madison Realty Capital Provides $720M for Residential Conversion of Former Pfizer HQ
Madison Realty Capital has originated a $720 million loan to support a joint venture between Metro Loft Developers and David Werner Real Estate Investments for the redevelopment of the former Pfizer headquarters. The project involves converting two adjacent office buildings, located at 219 and 235 East 42nd Street in Midtown East, New York City, into a 1,602-unit multifamily residential property.
Construction is already underway and is scheduled for completion by the fourth quarter of 2027. Once finished, the development will rank as the largest office-to-residential conversion in New York City’s history.
“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,” said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. “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 financing was arranged by Max Herzog, Marko Kazanjian, Andrew Cohen, and Max Hulsh of IPA Capital Markets, a division of Marcus & Millichap. Legal counsel for the borrower was provided by Fried Frank, with a team led by partner Michael J. Werner and associates Julian C.W. Henry and Loren Naftali.
