Latest news with #MetroLoft
Yahoo
19-05-2025
- Business
- Yahoo
IPA Capital Markets Arranges $720 Million Loan for Office-to-Residential Conversion of Former Pfizer Headquarters
Largest Financing Ever Secured for an Office-to-Residential Conversion in New York City NEW YORK, May 19, 2025--(BUSINESS WIRE)--IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI) specializing in capital markets services for major private and institutional clients, announced today the closing of a $720 million loan to 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. Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh of IPA Capital Markets, secured the financing with Madison Realty Capital. "By structuring flexible financing for the largest office-to-residential conversion in New York City's history, we are enabling a new benchmark for luxury rental housing in Midtown Manhattan," said Josh Zegen, managing principal and co-founder of Madison Realty Capital. "Metro Loft's track record executing complex office-to-residential conversions in New York City, combined with David Werner Real Estate Investments' deep experience with high-profile, institutional assets, makes them an ideal sponsorship team for a project of this scale." "David Werner Real Estate Investments and Metro Loft put together a best-in-class conversion project that enabled our IPA Capital Markets team to facilitate a competitive financing process," said Herzog. "Madison Realty Capital demonstrated professionalism from the outset and executed flawlessly resulting in a smooth and efficient closing. Once completed, this office-to-residential conversion will set a new standard for conversions, helping to meet the demand for Class A multifamily housing in New York City." Nathan Berman, founder and chief executive officer of Metro Loft, added, "We're thrilled to reach this major milestone in bringing our vision for this transformative development to life. We are grateful to our partners at David Werner Real Estate Investments and to our lenders at Madison Realty Capital for their confidence and commitment." Upon completion, the property will total 1,602 luxury rental apartments, 25% of which will be designated affordable under New York City's Affordable Housing from Commercial Conversions Tax Incentive Benefits program. It will also include over 100,000 square feet of amenities and approximately 30,000 square feet of ground-floor retail space. Across both buildings, residences will feature high-end finishes such as custom built-in kitchens with premium appliances, stone countertops, bespoke bathrooms with deep soaking tubs, in-unit washer/dryers, and integrated smart-home technology. "We are proud to collaborate with Metro Loft, a valued partner, on the transformation of the former Pfizer headquarters, a project that reflects our shared vision and commitment to revitalizing iconic New York real estate," said David Werner, president of David Werner Real Estate Investments. "It was a pleasure to close a loan with Madison Realty Capital. They are an accurate and efficient lender, while providing flexibility where needed and the surety of execution. Their proactive involvement and professional coordination were instrumental in achieving our objectives. I am deeply appreciative of the entire team at Madison Realty Capital, and I look forward to working with them again in the near future." Located at 219 and 235 East 42nd Street in the Midtown East neighborhood of Manhattan, the property will be converted into a state-of-the-art multifamily building. Construction of the property is currently underway and is expected to be completed by the fourth quarter of 2027. Fried Frank, led by Mike Werner, represented the borrower and Kriss & Feuerstein, led by Jerry Feuerstein, represented the lender. About IPA Capital Markets IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit About Madison Realty Capital Madison Realty Capital is a vertically integrated private equity firm focused on US-based commercial real estate private credit strategies. As of December 31, 2024, the firm, including its controlled affiliates (collectively, "Madison"), manages $22.1 billion in assets on behalf of a global institutional investor base. Since 2004, Madison has completed over $53.7 billion of securities and non-securities real estate transactions largely through direct lending to a wide range of borrowers, acquiring non-performing loans and making preferred equity investments. Madison Realty Capital seeks to deliver value across every phase of the property lifecycle by providing customized financing solutions and strong underwriting capabilities that meet borrowers' unique needs with speed and certainty of execution. To learn more, follow Madison Realty Capital on LinkedIn and visit About Metro Loft Metro Loft Management, LLC is a vertically integrated real estate development and management company founded in 1997 by Nathan Berman, who continues to serve as the managing principal. As a pioneer in the residential development of Lower Manhattan, Metro Loft has spent the past two decades redeveloping some of the most iconic buildings in downtown New York City, including landmarks such as 443 Greenwich St., 20 Exchange Place and 63 Wall St. Metro Loft is responsible for the acquisition, development and management of some of the most notable condominium and rental buildings in Lower Manhattan. Our reputation as a leading commercial-to-residential development firm is built upon our approach and vision to preserve the details that make each property unique and to elevate them through modern design and amenities. About David Werner Real Estate Investments David Werner Real Estate Investments, based in New York City and led by industry veteran David Werner, boasts over four decades of successful investment in commercial real estate. With extensive experience across office and residential sectors, the firm is recognized for its ownership and strategic management of some of New York City's iconic properties. View source version on Contacts Media Contacts For IPA Capital Markets:Gina Relva, VP of Public For Madison Realty Capital:Nathaniel Garnick/Grace CartwrightGasthalter & Co.(212) 257-4170madisonrealty@
Business Wire
19-05-2025
- Business
- Business Wire
IPA Capital Markets Arranges $720 Million Loan for Office-to-Residential Conversion of Former Pfizer Headquarters
NEW YORK--(BUSINESS WIRE)-- IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI) specializing in capital markets services for major private and institutional clients, announced today the closing of a $720 million loan to 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. Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh of IPA Capital Markets, secured the financing with Madison Realty Capital. Largest Financing Ever Secured for an Office-to-Residential Conversion in New York City Share 'By structuring flexible financing for the largest office-to-residential conversion in New York City's history, we are enabling a new benchmark for luxury rental housing in Midtown Manhattan,' said Josh Zegen, managing principal and co-founder of Madison Realty Capital. 'Metro Loft's track record executing complex office-to-residential conversions in New York City, combined with David Werner Real Estate Investments' deep experience with high-profile, institutional assets, makes them an ideal sponsorship team for a project of this scale.' 'David Werner Real Estate Investments and Metro Loft put together a best-in-class conversion project that enabled our IPA Capital Markets team to facilitate a competitive financing process,' said Herzog. 'Madison Realty Capital demonstrated professionalism from the outset and executed flawlessly resulting in a smooth and efficient closing. Once completed, this office-to-residential conversion will set a new standard for conversions, helping to meet the demand for Class A multifamily housing in New York City.' Nathan Berman, founder and chief executive officer of Metro Loft, added, 'We're thrilled to reach this major milestone in bringing our vision for this transformative development to life. We are grateful to our partners at David Werner Real Estate Investments and to our lenders at Madison Realty Capital for their confidence and commitment.' Upon completion, the property will total 1,602 luxury rental apartments, 25% of which will be designated affordable under New York City's Affordable Housing from Commercial Conversions Tax Incentive Benefits program. It will also include over 100,000 square feet of amenities and approximately 30,000 square feet of ground-floor retail space. Across both buildings, residences will feature high-end finishes such as custom built-in kitchens with premium appliances, stone countertops, bespoke bathrooms with deep soaking tubs, in-unit washer/dryers, and integrated smart-home technology. 'We are proud to collaborate with Metro Loft, a valued partner, on the transformation of the former Pfizer headquarters, a project that reflects our shared vision and commitment to revitalizing iconic New York real estate,' said David Werner, president of David Werner Real Estate Investments. 'It was a pleasure to close a loan with Madison Realty Capital. They are an accurate and efficient lender, while providing flexibility where needed and the surety of execution. Their proactive involvement and professional coordination were instrumental in achieving our objectives. I am deeply appreciative of the entire team at Madison Realty Capital, and I look forward to working with them again in the near future.' Located at 219 and 235 East 42nd Street in the Midtown East neighborhood of Manhattan, the property will be converted into a state-of-the-art multifamily building. Construction of the property is currently underway and is expected to be completed by the fourth quarter of 2027. Fried Frank, led by Mike Werner, represented the borrower and Kriss & Feuerstein, led by Jerry Feuerstein, represented the lender. About IPA Capital Markets IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit About Madison Realty Capital Madison Realty Capital is a vertically integrated private equity firm focused on US-based commercial real estate private credit strategies. As of December 31, 2024, the firm, including its controlled affiliates (collectively, 'Madison'), manages $22.1 billion in assets on behalf of a global institutional investor base. Since 2004, Madison has completed over $53.7 billion of securities and non-securities real estate transactions largely through direct lending to a wide range of borrowers, acquiring non-performing loans and making preferred equity investments. Madison Realty Capital seeks to deliver value across every phase of the property lifecycle by providing customized financing solutions and strong underwriting capabilities that meet borrowers' unique needs with speed and certainty of execution. To learn more, follow Madison Realty Capital on LinkedIn and visit About Metro Loft Metro Loft Management, LLC is a vertically integrated real estate development and management company founded in 1997 by Nathan Berman, who continues to serve as the managing principal. As a pioneer in the residential development of Lower Manhattan, Metro Loft has spent the past two decades redeveloping some of the most iconic buildings in downtown New York City, including landmarks such as 443 Greenwich St., 20 Exchange Place and 63 Wall St. Metro Loft is responsible for the acquisition, development and management of some of the most notable condominium and rental buildings in Lower Manhattan. Our reputation as a leading commercial-to-residential development firm is built upon our approach and vision to preserve the details that make each property unique and to elevate them through modern design and amenities. About David Werner Real Estate Investments David Werner Real Estate Investments, based in New York City and led by industry veteran David Werner, boasts over four decades of successful investment in commercial real estate. With extensive experience across office and residential sectors, the firm is recognized for its ownership and strategic management of some of New York City's iconic properties.
Yahoo
19-05-2025
- Business
- Yahoo
Madison Realty Capital Originates $720 Million Loan for Office-to-Residential Conversion of Former Pfizer Headquarters
Largest Financing Ever Secured for an Office-to-Residential Conversion in New York City NEW YORK, May 19, 2025 (GLOBE NEWSWIRE) -- Madison Realty Capital, a vertically integrated real estate private equity firm focused on real estate private credit, today announced that it has originated a $720 million loan to 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. Located at 219 and 235 East 42nd Street in the Midtown East neighborhood of Manhattan, the property will be converted into a 1,602-unit state-of-the-art multifamily building. Construction of the property is currently underway and is expected to be completed by the fourth quarter of 2027. 'By structuring flexible financing for the largest office-to-residential conversion in New York City's history, we are enabling a new benchmark for luxury rental housing in Midtown Manhattan,' said Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital. 'Metro Loft's track record executing complex office-to-residential conversions in New York City, combined with David Werner Real Estate Investments' deep experience with high-profile, institutional assets, makes them an ideal sponsorship team for a project of this scale.' Nathan Berman, Founder and Chief Executive Officer of Metro Loft, added, 'We're thrilled to reach this major milestone in bringing our vision for this transformative development to life. We are grateful to our partners at David Werner Real Estate Investments and to our lenders at Madison Realty Capital for their confidence and commitment.' Upon completion, the property will total 1,602 luxury rental apartments, 25% of which will be designated affordable under New York City's Affordable Housing from Commercial Conversions Tax Incentive Benefits program. It will also include over 100,000 square feet of amenities and approximately 30,000 square feet of ground-floor retail space. Across both buildings, residences will feature high-end finishes such as custom built-in kitchens with premium appliances, stone countertops, bespoke bathrooms with deep soaking tubs, in-unit washer/dryers, and integrated smart-home technology. 'We are proud to collaborate with Metro Loft, a valued partner, on the transformation of the former Pfizer headquarters, a project that reflects our shared vision and commitment to revitalizing iconic New York real estate', said David Werner, President of David Werner Real Estate Investments. 'It was a pleasure to close a loan with Madison Realty Capital. They are an accurate and efficient lender, while providing flexibility where needed and the surety of execution. Their proactive involvement and professional coordination were instrumental in achieving our objectives. I am deeply appreciative of the entire team at Madison Realty Capital, and I look forward to working with them again in the near future.' Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh of IPA Capital Markets, a division of Marcus & Millichap (NYSE: MMI) specializing in capital markets services for major private and institutional clients, secured the financing with Madison Realty Capital. 'David Werner Real Estate Investments and Metro Loft put together a best-in-class conversion project that enabled our IPA Capital Markets team to facilitate a competitive financing process,' said Herzog. 'Madison Realty Capital demonstrated professionalism from the outset and executed flawlessly, resulting in a smooth and efficient closing. Once completed, this office-to-residential conversion will set a new standard for conversions, helping to meet the demand for Class A multifamily housing in New York City.' Located in Midtown East, the property is situated in one of Manhattan's most sought-after office neighborhoods, surrounded by a high concentration of Class A office space that fuels strong demand for high-quality rental housing. With over 350 feet of frontage along 42nd Street, one of Midtown's most prominent thoroughfares, the site offers unparalleled visibility and access. The property is within close proximity to major transit hubs, including Grand Central Terminal, and is conveniently positioned near leading business centers, luxury retail, fine dining, and cultural destinations. Fried Frank, led by Mike Werner, represented the borrower and Kriss & Feuerstein, led by Jerry Feuerstein, represented the lender. About Madison Realty Capital Madison Realty Capital is a vertically integrated private equity firm focused on US-based commercial real estate private credit strategies. As of December 31, 2024, the firm, including its controlled affiliates (collectively, 'Madison'), manages $22.1 billion in assets on behalf of a global institutional investor base. Since 2004, Madison has completed over $53.7 billion of securities and non-securities real estate transactions largely through direct lending to a wide range of borrowers, acquiring non-performing loans and making preferred equity investments. Madison Realty Capital seeks to deliver value across every phase of the property lifecycle by providing customized financing solutions and strong underwriting capabilities that meet borrowers' unique needs with speed and certainty of execution. To learn more, follow Madison Realty Capital on LinkedIn and visit About Metro LoftMetro Loft Management, LLC is a vertically integrated real estate development and management company founded in 1997 by Nathan Berman, who continues to serve as the managing principal. As a pioneer in the residential development of Lower Manhattan, Metro Loft has spent the past two decades redeveloping some of the most iconic buildings in downtown New York City, including landmarks such as 443 Greenwich St., 20 Exchange Place and 63 Wall St. Metro Loft is responsible for the acquisition, development and management of some of the most notable condominium and rental buildings in Lower Manhattan. Our reputation as a leading commercial-to-residential development firm is built upon our approach and vision to preserve the details that make each property unique and to elevate them through modern design and amenities. About David Werner Real Estate InvestmentsDavid Werner Real Estate Investments, based in New York City and led by industry veteran David Werner, boasts over four decades of successful investment in commercial real estate. With extensive experience across office and residential sectors, the firm is recognized for its ownership and strategic management of some of New York City's iconic properties. About IPA Capital Markets IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit Media ContactsFor Madison Realty Capital:Nathaniel Garnick/Grace CartwrightGasthalter & Co.(212) 257-4170madisonrealty@ For IPA Capital Markets: Gina Relva, VP of Public in to access your portfolio
New York Post
29-04-2025
- Business
- New York Post
This is the largest office-to-residential conversion in the US — and it's just the beginning
The massive edifice at 25 Water St. has successfully swapped its cubicles for more than 1,000 apartments. The former Financial District office tower underwent a two-year gut renovation to turn it into a high-end residential apartment complex. The behemoth of a property was once shared by JPMorgan Chase, the National Enquirer and the New York Daily News. When the 32-story tower opened up leasing in January, it became the largest office-to-residential conversion in US history. Advertisement 8 A rendering of the new 25 Water St. facade. Streetsense 8 The building was once known for its brutalist brick facade. Stefano Giovannini The overhaul is just the tip of the iceberg of office-to-residential conversions in New York City, thanks to ambitious developers and new regulations. Advertisement 'They can't compete as office buildings anymore,' Nathan Berman, the founder of developer Metro Loft, told the New York Times. 'And we're taking them, sort of, out of the race.' This newly debuted building, called SoMA (South Manhattan), contains 1,320 units ranging from studios to three-bedroom apartments. Rents range from $4,000 for a studio to more than $10,000 for a three-bedroom, according to StreetEasy. 8 A rendering of SoMA interiors. Streetsense Two four-bedroom units on higher floors start leasing this summer, the Times reported, and 25% of the building's units have been set aside as affordable. Advertisement Not long ago, 25 Water St. was derided by its office tenants as fortress-like. The 55-year-old brutalist structure was originally built to house computers, hence the former facade's striking lack of windows. The sparse, thin exposures were designed to keep mid-century behemoth computers cold. Now, SoMA is an amenity-packed oasis for young professionals, the first of whom moved in February. Residents enjoy luxurious amenities like an infrared dry sauna, a salt room, pickleball courts, two pools and a two-lane bowling alley. 8 SoMA residents enjoy in-house pickleball courts. Streetsense 8 Stressed-out office workers of years past have been replaced by blissed-out residents in the SoMA spa. Streetsense Advertisement Developers Metro Loft, Rockwood Capital and GFP Real Estate were behind the conversion. They purchased the nearly vacant property in 2022 after occupancy plummeted during the COVID-19 pandemic. The developers undertook an ambitious renovation, which included replacing the facade's all-encompassing brickwork with large windows, carving out light wells and adding 10 stories. Developers and architects will attest to the fact that office conversions are particularly tricky — windows, central air conditioning and bathrooms often need total overhauling. Building and fire codes for residential buildings are also different from office buildings. The Adams administration's 'City of Yes' plan has made office-to-residential conversions significantly easier, the Post previously reported, making it more than likely that similar developments to 25 Water St. are on the horizon. It's clear that, for some developers, the endeavor is worthwhile. Pearl House, a former 1970s office tower located in the bustling Seaport District, opened its doors in late 2023 and is fully leased. The 588-unit conversion, developed by Vanbarton Group, was the largest office-to-resi conversion in NYC until SoMA. 8 5 Times Square is headed for its own residential conversion. RXR Realty 8 A rendering of 55 Broad St., once the HQ of Goldman Sachs. Rendering courtesy of Streetsense 8 The Flatiron Building is slated to host high-end condominiums. Getty Images/iStockphoto Advertisement Developers RXR, SL Green, and Apollo Global Management recently filed plans to convert 5 Times Square into 1,000-plus apartments, the Real Deal reported. And, after years of rumors, plans to build high-end condominium units at the iconic Flatiron Building became official late last summer. The former headquarters of Goldman Sachs, located at 55 Broad St., began leasing last fall. Metro Loft developed the property in partnership with Silverstein Properties. The former is also partnering with David Werner Real Estate Investments in the ongoing conversion of the old Pfizer headquarters in Midtown. It is slated for completion in 2027 with 1,602 apartments, easily surpassing SoMA.
New York Times
28-04-2025
- Business
- New York Times
Apartments for Rent in a Former Office, but You Have to Live in Midtown
For many New Yorkers, Midtown Manhattan, with its gleaming skyscrapers and busy transportation hubs, lacks an element of cool and cachet that its more culturally vibrant neighbors have. Hordes of office workers, commuters and tourists typically flood the area, leaving it feeling anything but residential. What Midtown does have, though, is a glut of underutilized office buildings. Two in particular brought Nathan Berman, chief executive of Metro Loft Management, to the area: the hulking buildings of Pfizer's former headquarters on East 42nd Street near Grand Central Terminal. Metro Loft, along with David Werner Real Estate, is converting the buildings into about 1,600 rental apartments. Once completed, the project would be the largest office-to-apartment conversion nationwide, Mr. Berman said. The first tenants are expected to move in at the end of next year. The developers also recently bought an office building around the corner from the Pfizer site to create roughly 450 residences, 25 percent of which will be affordable housing. 'We go where there is opportunity to convert what we believe to be undervalued assets, and we can do that anywhere in Manhattan,' Mr. Berman added. 'Right now, Midtown seems to be presenting the most opportunities for us.' Mr. Berman has spent over two decades converting office buildings in the financial district, but the Pfizer project is his first in Midtown. He believes that future tenants, whom he calls 'active younger professionals,' will forgo more traditional neighborhoods like Greenwich Village, Chelsea or the Upper East Side, with their charming cafes and green spaces, for splashy building amenities like a gym, a rooftop pool, lounges, co-working spaces, and a washer and dryer in each apartment. 'No one even needs a grocery store anymore, since everything gets delivered,' Mr. Berman said. In addition, he said, as more companies order employees back to their desks, he hopes more people will want to live closer to the office, even if they have to be on site only part of the week. People 'want to walk or bike or even scooter to their offices,' he said. Arpit Gupta, an associate professor of finance at New York University's Stern School of Business, said the proximity to thousands of workplaces was one of Midtown's selling points. And once people move in, it'll help the neighborhood: More tenants will eventually attract 'the construction of retail, food and beverage industries, which serve to attract other renters in a positive cycle,' she said. Metro Loft was one of the first to transform moribund office buildings in the financial district into apartments. Mr. Berman's first big project downtown, at 17 John Street, was converted in 1998. Since then, he has converted 15 buildings in the financial district, with four more in development and others in the pipeline. In cities across the country, more office buildings have been turned into housing, as officials clamor to solve for the mismatch between a surfeit of outdated office buildings and a lack of housing. This year, nearly 71,000 residences have either been approved, remain under construction or are in the planning phase, which is more than triple the number from three years ago, according to a February report from RentCafe. New York, which is the country's largest office market, has over 8,300 offices set to be converted into apartments this year. In other cities, developers often opt for areas with a mix of commercial and residential properties. Michael Pestronk, the chief executive of the development company Post Brothers, prefers converting office buildings into apartments in neighborhoods already replete with housing, he said. But his Philadelphia-based firm — which, according to its website, has worked on more than 30 properties — recently started work on converting buildings in Washington, D.C. 'We've certainly done developments in tertiary neighborhoods, but with the number of opportunities we're seeing today, we feel like we don't need to be in pioneering locations,' Mr. Pestronk said, referring to areas not considered traditionally residential. 'Instead, we're focused on main locations that are very obvious in terms of the demand.' Many developers have been keen to convert office buildings as more properties sell at a discount, many of them in central business districts that for years have suffered from empty buildings and streets. 'From 2012 to 2019, these buildings that we're converting were trading — even if they were basically obsolete — for $400 to $500 per square foot, and now they're $100 to $200 a square foot,' Mr. Pestronk said. Adapting older commercial properties can also be less costly than building new housing. Research from CBRE, a real estate firm, estimates the cost of conversion to be $100 to $500 or more per square foot, depending on the original layout. Those costs are still as much as 20 percent less than building something new because the edifice is retained, Mr. Pestronk said. The biggest cost differential, he said, is from the time saved. Construction on a conversion can be completed as much as one year faster than building something from the ground up. 'The speed to market is worth almost as much as the savings from reusing the structure,' he added. Commercial structures also have thicker floor slabs, built to accommodate heavy equipment, making them ideal for reducing noise in closer living arrangements. But not all empty or outdated buildings can be converted. Estimates vary, but a Moody's Analytics study from 2023 of New York offices found that only 3 percent were suitable for transformation. A study for the Brookings Institution suggested that 9 to 11 percent of buildings nationwide could be converted, a statistic that translates into about 2,500 buildings. The difficulty in turning office buildings into apartments is that they are laid out differently. Office buildings, for example, may not have windows that open or have too much space from wall to wall. Buildings that are converted are usually gutted and reimagined. The old Pfizer buildings have floors that are roughly 200 feet deep, and Mr. Berman will have to divide the space to meet light and air regulations, such as the requirement that each apartment has a minimum distance between an operable window and building walls. Mr. Berman has had experience doing this. Most recently, he did it at 25 Water Street in New York's financial district, which had a depth almost as large as Pfizer's old offices. The solution: Create two atriums so that more windows can be added to apartments. The plan is to do the same at the Pfizer buildings. Then there are complex zoning restrictions and higher interest rates, and even experienced developers like Mr. Berman could run into unexpected expenses that put a project at risk. Not to mention potential tariffs, which are a wild card that will affect the price of materials needed for new construction as well as conversions. Post Brothers recently faced foreclosure at one of its buildings in Washington, and Metro Loft encountered financial problems because of rising rates at two properties, even though both were more than 90 percent occupied. 'If you're highly leveraged and your rate doubles, it will put you in a tough situation,' a spokesperson for the firm said. As for whether young people will happily move to the bustle of Midtown: If the past is any indication, it's possible. It happened in both the financial district and Hudson Yards, the mixed-use area on the western edge of Manhattan where Pfizer has relocated. Mr. Berman hopes to replicate the success in Midtown. He said, 'Shaking and transforming buildings in the middle of what is an office area takes an empty office building off the market and brings in residential and that will invigorate an area.'
