David Werner Real Estate, Metro Loft Management and the Northwind Group are banding together for another office-to-residential conversion.
Ran Eliasaf’s Northwind provided $90 million to David Werner and Metro Loft for a conversion of 675 Third Avenue in Midtown Manhattan, Bisnow reported. The financing covers the acquisition and predevelopment of the soon-to-be residential property.
The development partners recently closed on acquiring the property from the Durst Organization, a Metro Loft representative told The Real Deal, while declining to cite the specific price. TRD reported in January that Werner was in contract to buy the property for more than $100 million and was in talks with Metro Loft about the site.
At the time the contract was signed, the 340,000-square-foot space was about two-thirds occupied by tenants, some with “sticky” leases, according to a source familiar, which could make it challenging to clear the way for a conversion. The deed for the sale has yet to appear in public records.
David Werner and Nathan Berman’s Metro Loft are planning to convert the property into approximately 430 rental units. The building will have the usual bells and whistles in terms of amenities, Metro Loft said, and ground-floor commercial space.
With financing in place, work on the project is expected to begin shortly. The developers are hoping for residents to move into the property in roughly 18 months, the Metro Loft rep added.
Metro Loft and David Werner have become quick friends on the conversion front and Northwind has previously brought financing to the table.
A few months ago, Northwind provided a $135 million loan to the same pair of developers for their project at the former Pfizer headquarters, 235 East 42nd Street in Midtown Manhattan. Northwind also provided a $75 million loan for the development last summer.
Metro Loft is planning to convert the former Pfizer building into more than 1,500 rental units, which would represent the largest office-to-resi conversion in New York City.
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