New York City developers secure major loans for office conversions

Real estate developers in New York City are securing significant financing for projects that repurpose existing office buildings into residential and storage spaces.

In Manhattan, a joint venture between Mequity Companies and Flatiron Equities Real Estate has secured a $57 million loan from PGIM to refinance an office-to-storage conversion at 152 West 36th Street. The project aims to transform a Class C office building into a 1,500-unit self-storage facility operated by Manhattan Mini Storage, with completion expected in early 2027.

In the Financial District, Northwind Group has provided a $219 million construction loan for 100 Wall Street. This project, a joint venture between BLDG Management and David Werner Real Estate Investments, involves converting several floors of the 29-story office building into 168 rental apartments. The conversion utilizes the 467m tax incentive program, which mandates that at least 25 percent of the units be designated as affordable housing.