Madison Realty Capital Funds $720M Pfizer HQ Residential Conversion New York

Madison Realty Capital has provided a $720 million loan to a joint venture between Metro Loft Developers and David Werner Real Estate Investments for the largest office-to-residential conversion in New York City’s history. The project involves converting Pfizer's former headquarters at 219 and 235 East 42nd Street in Midtown Manhattan into a 1,602-unit multifamily building, with approximately 25% of the units designated as affordable housing. Construction is underway and is expected to be completed by the fourth quarter of 2027. The development aims to set a new benchmark for luxury rental housing in the city, featuring high-end finishes, smart-home technology, over 100,000 square feet of amenities, and around 30,000 square feet of ground-floor retail space. IPA Capital Markets, a Marcus & Millichap division, played a key role in securing the financing, while legal counsel was provided by Fried Frank. The collaboration highlights the sponsors' expertise in complex conversions and high-profile assets, reflecting a significant transformation of iconic New York real estate.