Marcus & Millichap Secures $75 Million for Major NYC Project
Introduction to a Transformative Project
In the heart of New York City, a significant transformation is underway as Marcus & Millichap's IPA Capital Markets secures $75 million in acquisition financing for a prominent project. This initiative aims to convert the former Pfizer headquarters into a luxurious residential space, showcasing the firm’s expertise in capital markets.
Details of the Financing
Marcus & Millichap (NYSE: MMI), renowned for its focus on capital markets services, announced this substantial acquisition financing. This project is notable because it involves combining two buildings located at 219 E 42nd St. and 235 E 42nd St.
Impact of the Conversion
The merger of these two buildings is expected to yield an impressive total of over 1,400 units, marking it as the largest office-to-residential conversion in the history of New York City. Max Herzog from IPA Capital Markets highlighted that this project will contribute significantly to the residential rental market.
The Team Behind the Project
A dedicated team from IPA Capital Markets, led by Max Herzog and supported by Marko Kazanjian, Andrew Cohen, and Max Hulsh, played a crucial role in obtaining the financing through Northwind Group. Their collaborative efforts on behalf of David Werner Real Estate Investments and Metro Loft Management led to a successful financing process.
Factors Contributing to Success
Herzog noted that the increasing shortage of free-market multifamily units in Manhattan was a driving factor that attracted lenders. The favorable acquisition terms negotiated by David Werner, combined with Metro Loft's significant experience in similar projects, fueled lender interest, ensuring optimal financing terms for the parties involved.
Project Specifications
The existing structure, currently a 10-story office building comprised of 291,000 square feet, is set to be transformed into a 29-story, approximately 540,000 square-foot luxury multifamily property. This future residence will host 660 units, featuring various layouts from studios to spacious three-bedroom lofts, catering to diverse tenants.
About IPA Capital Markets
IPA Capital Markets operates under Marcus & Millichap (NYSE: MMI) and focuses on delivering comprehensive real estate financing solutions. Specializing in debt, mezzanine financing, preferred equity, and joint venture equity, IPA Capital Markets is dedicated to assisting both private and institutional clients in navigating the complexities of real estate investment.
About Marcus & Millichap, Inc.
As a leading brokerage firm specializing in commercial real estate investment sales, Marcus & Millichap enjoys a strong presence across the United States and Canada. With a robust team of investment professionals, the firm prides itself on delivering exceptional advisory services and market research, ensuring that clients receive the best guidance possible in the ever-evolving real estate market.
Frequently Asked Questions
What is the significance of the $75 million financing?
The $75 million financing is pivotal for the conversion of a historic office space into luxury residential apartments, marking a major shift in land use.
Who are the principal parties involved in the project?
The project is led by IPA Capital Markets, with key involvement from David Werner Real Estate Investments and Metro Loft Management.
What types of units will be available in the converted building?
The converted property will feature 660 units, ranging from studios to three-bedroom loft-style apartments.
Why is this project considered the largest of its kind?
It represents the largest office-to-residential conversion in New York City, significantly increasing housing availability in the area.
How does Marcus & Millichap support its clients in this project?
The firm provides tailored financing solutions and strategic market insights to help their clients succeed in real estate ventures.
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