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BHI, the U.S. branch of Bank Hapoalim, B.M. and a full-service commercial bank, has extended an $88 million loan to support the recapitalization of 845 Third Ave., a 21-story office tower in Midtown East. The 350,000-square-foot property is slated for conversion from its current office use into a 529-unit residential rental building, marking a significant repositioning of the asset.
The financing was provided to Quantum Pacific Realty and its partner, Metro Loft. The capital will be used to recapitalize the existing Midtown East asset in advance of the planned office-to-residential conversion, positioning the ownership group to move forward with its strategy for the property. Specific loan terms, including duration, rate, and structure, were not disclosed.
Ilana Druyan, SVP, team leader and head of international origination for commercial real estate at BHI, framed the transaction within the bank’s broader approach to the New York City market. She described New York City as one of the most dynamic and consequential real estate markets globally and emphasized that contributing to the market’s growth and trajectory is a core mission for the bank. Druyan highlighted that projects such as this Midtown East recapitalization demonstrate what can be achieved when aligned partners, capital and vision come together to advance opportunities.
Quantum Pacific Realty is the real estate arm of the Quantum Pacific Group and has been building a portfolio in Manhattan. Its holdings include 767 Third Ave. and 101 Greenwich St., underscoring the firm’s focus on New York City assets. Metro Loft, Quantum Pacific’s partner on 845 Third Ave., is a Manhattan-based developer founded in 1997 by Nathan Berman and is known for its specialization in office-to-residential conversions.
The 845 Third Ave. transaction aligns with Metro Loft’s established strategy of repositioning former office properties into residential assets and reflects Quantum Pacific Realty’s continued investment activity in Manhattan. While detailed timelines, construction budgets and projected residential program specifics were not disclosed, the planned 529-unit rental conversion represents a substantial shift in use for the 21-story building. The involvement of a bank lender like BHI in recapitalizing the property ahead of conversion illustrates ongoing credit availability for office-to-residential projects backed by experienced sponsors in New York City.
The post BHI Funds $88M Recapitalization of 845 Third Ave. for Midtown East Resi Conversion appeared first on CRE Market Beat.
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