NEW YORK, NY – — In a landmark deal for New York City’s real estate sector, IPA Capital Markets, a division of Marcus & Millichap (NYSE: MMI), has arranged a $720 million loan for the conversion of the former Pfizer headquarters into a luxury residential complex.
The financing, secured with Madison Realty Capital, is the largest loan ever closed for an office-to-residential conversion in New York City.
The funding was arranged on behalf of a joint venture between Metro Loft Developers and David Werner Real Estate Investments, who are spearheading the ambitious redevelopment of the two adjacent and connected buildings at 219 and 235 East 42nd Street in Midtown East.
“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, combined with David Werner’s experience with high-profile assets, makes them an ideal team for a project of this scale.”
The IPA Capital Markets team—Max Herzog, Marko Kazanjian, Andrew Cohen, and Max Hulsh—led the financing effort, facilitating a highly competitive process to secure the loan.
“David Werner Real Estate Investments and Metro Loft put together a best-in-class conversion project that enabled our IPA Capital Markets team to facilitate a competitive financing process,” said Herzog. “Madison Realty Capital executed flawlessly, resulting in a smooth and efficient closing.”
A Transformative Midtown Development
Once complete, the development will deliver 1,602 luxury rental apartments, 25% of which will be designated as affordable housing under the city’s Affordable Housing from Commercial Conversions Tax Incentive Benefits program. The project will also include more than 100,000 square feet of amenities and 30,000 square feet of ground-floor retail space.
Units will feature high-end finishes such as custom built-in kitchens with premium appliances, stone countertops, spa-style bathrooms with soaking tubs, in-unit washer/dryers, and integrated smart-home technology.
“We’re thrilled to reach this major milestone in bringing our vision for this transformative development to life,” said Nathan Berman, founder and CEO of Metro Loft. “We are grateful to our partners at David Werner Real Estate Investments and to our lenders at Madison Realty Capital for their confidence and commitment.”
David Werner, president of David Werner Real Estate Investments, added, “This project reflects our shared vision and commitment to revitalizing iconic New York real estate. Madison Realty Capital provided the flexibility and certainty we needed, and we look forward to working with them again.”
Legal and Construction Details
The conversion is currently underway, with completion expected in the fourth quarter of 2027. Law firm Fried Frank, led by Mike Werner, represented the borrower, while Kriss & Feuerstein, led by Jerry Feuerstein, represented the lender.
This historic financing comes as office-to-residential conversions gain momentum across urban centers, fueled by shifting demand in the post-pandemic real estate market. With this record-setting transaction, the former Pfizer headquarters is poised to become one of the city’s most significant examples of adaptive reuse, aligning with broader trends in urban housing development and sustainability.
