Madison Realty Capital originated a $720-million loan to a joint-venture between Metro Loft Developers and David Werner Real Estate Investments for the development and conversion of the former Pfizer headquarters. Located at 219 and 235 E. 42nd St. in Midtown East, the two adjacent office buildings will be converted into a 1,602-unit multifamily building. Construction of the property is underway and is expected to be completed by the fourth quarter of 2027.

“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.”

Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh of IPA Capital Markets, a division of Marcus & Millichap specializing in capital markets services for major private and institutional clients, secured the financing with Madison Realty Capital. “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.

A Fried Frank team of partner Michael J. Werner and associates Julian C.W. Henry and Loren Naftali advised the borrower.