One of the most-watched office-to-residential conversions in Manhattan secured the financing to move forward.
A joint venture of Nathan Berman’s MetroLoft and Idan Ofer’s Quantum Pacific Realty landed a $170 million loan for the redevelopment of 767 Third Avenue in Midtown East, the Commercial Observer reported. It’s at least the second loan provided at the site by the U.S. arm of Bank Hapoalim.
“Our lending philosophy has always centered on backing experienced sponsors, investing in long-term relationships, and supporting projects that contribute meaningful value to the communities they serve,” BHI chief executive officer Gil Karni said in a statement.
The developers did not immediately respond to requests for comment.
The Real Deal reported in January 2025 that MetroLoft partnered with Quantum Pacific on the $88 million purchase of the property from Sage Realty. BHI provided a $55 million bridge loan to finance the acquisition.
Developers filed plans for the project last summer, which include turning the 282,000-square-foot office building into a 337-unit apartment building with 68,000 square feet of retail space. Residential amenities are expected to include a fitness center, a sports simulator, a spa, treatment rooms, coworking space and a rooftop lounge.
The 40-story property, built in 1981, is eligible for a residential conversion under the City of Yes passed in December 2024. The legislation changed eligibility from buildings constructed before 1961 to those built by 1991, making conversions of buildings such as 767 Third Avenue possible.
While Ofer and Berman are full steam ahead at 767 Third Avenue, they’re already cooking up their next conversion.
Two months ago, they were in contract to buy the office building at 1 Whitehall Street in the Financial District for just north of $100 million, sources told The Real Deal. The seller is LoanCore Capital, the Greenwich, Connecticut-based debt fund that foreclosed on the building in December and took it over from the Chetrit Organization.
Ofer, the Israeli billionaire heir to a shipping fortune, teamed up with Berman last year to buy the office building at 101 Greenwich Street for $105 million. The partners landed a $220 million construction loan from Apollo in January to convert the building into 614 apartments.
They’re also partnering on 845 Third Avenue, a 411-unit conversion.
Read more
Nathan Berman to convert 767 Third Ave office to resi
Nathan Berman, Idan Ofer paying $100M for next office-to-resi conversion
Idan Ofer, Nathan Berman nab 101 Greenwich loan
