Nathan Berman’s Metro Loft Management Converting 767 Third Avenue

Nathan Berman has found his next office conversion project on Third Avenue along with Israeli billionaire Idan Ofer — possibly the first of its type under the City of Yes.

Berman’s Metro Loft Management partnered with Ofer’s Quantum Pacific on their $88 million purchase of the building at 767 Third Avenue from Sage Realty, The Real Deal has learned.

The roughly 330,000-square-foot building is around half empty. It was developed in 1981, which means that prior to the City of Yes passing in December, the 40-story building would not have been eligible for a residential conversion.

The new legislation changed eligibility from buildings constructed before 1961 to those built by 1991, making conversions of buildings like 767 Third Avenue possible. The city’s 467-M conversion tax incentive is also creating more opportunities, Berman said.

“City of Yes and the 467-M incentive make every conversion more viable,” he wrote in an email, adding the partners are still considering a few different approaches for how to convert the building.

The purchase closed last week with a $55 million loan from Bank Hapoalim. An Eastdil Secured team led by Gary Phillips and Will Silverman negotiated the sale on behalf of Sage Realty.

Berman is working on a number of very large conversion projects across Manhattan, including the redevelopment of the former Pfizer headquarters at 235 East 42nd Street along with David Werner. The project is slated to deliver 1,500 apartments, making it the largest office-to-residential conversion ever.