Nathan Berman, InterVest Get Record Conversion Financing

New York City will head into next year with a new titleholder for the largest office-to-residential financing.

InterVest Capital Partners and Nathan Berman’s Metro Loft Management scored $779 million in financing for their conversion of 111 Wall Street in the Financial DIstrict, Bloomberg reported. Apollo Global Management, JPMorgan Chase and Adi Chugh’s Tyko Capital provided the financing.

Additionally, InterVest and Metro Loft extended a previous loan on the project, bringing the total financing for the development up to $867 million.

The financing is divided between a $700 million senior loan and $167 million in mezzanine debt, according to the Commercial Observer.

A Walker & Dunlop team including Dustin Stolly, Aaron Appel and Adam Schwartz arranged the historic financing.

Last year, Metro Loft and InterVest reached an agreement to convert the 1.2-million-square-foot office building into thousands of residential units.

InterVest bought the office building in 2019 with Nightingale Properties for $175 million, but faced foreclosure from lender Oaktree Capital Management in 2023 before the pivot to a conversion led Oaktree to call off the dogs.

The redevelopment will see the partners tack five floors onto the existing 24-story structure and renovate the lobby. There will be a total of 1,568 units, approximately 25 percent of which will be set aside for those earning an average of 80 percent of the area median income.

The project will also include a plethora of amenities, including a spa, golf simulator, rooftop basketball and padel courts. Gensler is designing the project, which is expected to wrap next year.

As for the previous record for an office-to-residential financing package in the city? That title also belonged to Berman; in the spring, Metro Loft and David Werner secured a $720 million loan from Madison Realty Capital to convert the former Pfizer headquarters in Midtown East into a 1,600-unit residential building.

— Holden Walter-Warner