New York City’s conversion king has found his way to more financing for one Midtown East project.
Nathan Berman’s MetroLoft Management and David Werner Real Estate secured $231 million in construction financing for their office-to-residential conversion at 675 Third Avenue, the Commercial Observer reported. Ran Eliasaf’s Northwind Group provided the financing.
The debt will refinance previous acquisition debt for the ownership venture, as well as help fund the ongoing buildout of the project. Northwind is a repeat lender to the project, having provided $90 million in acquisition financing to the pair.
Eliasaf told the publication that his company was comfortable with being a lender for the project in part because it is a “fairly simple conversion with no structural work.”
He also referred to Berman as “the most experienced converter in the city” and brushed aside any concerns after an incident that saw buckled columns at the old Pfizer building over the summer; MetroLoft partnered with David Werner to combine two buildings that formerly housed the headquarters of Pfizer into one residential development with about 1,600 units. Part of those plans for 235 and 219 East 42nd Street included adding floors to 219 East 42nd Street, while redesigning the building at 235 East 42nd Street.
David Werner acquired the Third Avenue site from the Durst Organization last April for $100 million.
Months later, MetroLoft filed conversion plans calling for a 464-unit building spanning 321,000 square feet, including retail space on the ground floor. The property would be slightly taller than the office building that stood on the site, leaping from 31 to 35 stories.
The development is expected to utilize the 467m tax abatement program, according to Eliasaf, meaning 25 percent of the rentals would be designated as affordable.
Eliasaf just raised $1 billion for its third real estate credit fund, doubling its original $500 million target. The fund focuses on senior loans ranging from $100 million to $200 million, primarily targeting residential properties and condo/office conversion projects.
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