NEW YORK CITY — IPA Capital Markets has closed a $720 million construction loan for a joint venture between Metro Loft Developers and David Werner Real Estate Investments for the development and conversion of the former Pfizer headquarters consisting of two adjacent and connected office buildings. According to media outlets, Metro Loft and David Werner also secured a $135 million acquisition loan earlier this year.
The buildings are located at 219 and 235 East 42nd St. in the Midtown East neighborhood of Manhattan. Upon completion, the property will include 1,602 units. Construction is underway and is expected to wrap by the fourth quarter of 2027.
Law firms Fried Frank and Kriss & Feuerstein represented the borrower and the lender, respectively. Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh of IPA Capital Markets secured the financing through Madison Realty Capital.
Twenty-five percent of the units will be designated affordable under a New York City tax benefit program. While specific rent restrictions were not disclosed, a minimum of 5 percent of units must be affordable to households earning up to 40 percent of the area median income (AMI), and the weighted average of the affordable units may not exceed 80 percent of AMI, under New York City’s Affordable Housing from Commercial Conversions (AHCC) program.
The property also will include approximately 100,000 square feet of amenities and approximately 30,000 square feet of ground-floor retail space. Across both buildings, residences will feature custom kitchens with premium appliances, stone countertops, bathrooms with deep soaking tubs, in-unit washers and dryers and integrated smart-home technology.
The two properties were occupied by Pfizer until 2023 when the company moved to Hudson Yards. The building at 219 East 42nd Street was originally constructed in 1905, and the building at 235 East 42nd Street was built in 1961, specifically for Pfizer’s office use.