Midtown Office-to-Resi Conversion Secures $480M Financing

Madison Realty Capital originated a $480-million loan to Yellowstone Real Estate Investments for the conversion of 1740 Broadway, a 523,051-square-foot, 27-story office building located along Broadway between 55th and 56th streets in Midtown Manhattan, into a 420-unit luxury residential project. Ackman-Ziff’s Jason Krane, Russ Schildkraut and Simon Ziff arranged the financing on behalf of Yellowstone.

With completion scheduled for the third quarter of 2029, 1740 Broadway will comprise 238 multifamily rental units across floors 3-13 and 182 condominium units across floors 14-27.

“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,” said Josh Zegen, co-founder and managing principal of Madison Realty Capital. “We were able to leverage our experience in this strategy having provided $720.0 MM 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.”