Nathan Berman and InterVest Capital Partners are moving forward with their plans to convert the office tower at 111 Wall Street in the Financial District into apartments.
Berman’s Metro Loft Management and InterVest signed an agreement to convert the 1.2 million-square-foot tower into 1,300 units, sources told The Real Deal. Construction is scheduled to start in the middle of 2025, with the rental units expected to begin coming online the following year.
Gensler will oversee the conversion.
Berman confirmed the deal and wouldn’t say specifically if he plans to use the city’s office-conversion tax incentive program on 111 Wall.
“In every conversion we are involved with currently, as well as all new projects going forward — we will be considering participating in the city’s abatement initiative,” he wrote in an email.
Spokespeople for InterVest and Oaktree declined to comment.
As part of the agreement Oaktree Capital Management, which is part of the partnership that holds a $500 million mortgage on the property, agreed to allow funds originally approved for an office renovation to be used for the conversion.
Oaktree, along with PIMCO and Petros PACE Finance, provided the financing in 2021 when Intervest (then known as Wafra Capital Partners) and Elie Schwartz’s Nightingale properties planned to renovate the 1960s-era building to attract office tenants.
But interest rates began to rise and Schwartz became embroiled in a crowdfunding scandal. Oaktree moved to foreclose on the property but canceled the action.
Berman, meanwhile, is busy converting a number of large office buildings in Manhattan.
Among those projects are the former Pfizer headquarters in Midtown, to deliver roughly 1,500 rental apartments, and 25 Water Street in the Financial District, to deliver 1,300 units.
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