Quantum Pacific, Metro Loft Land Loan for 845 Third Ave

Idan Ofer and Nathan Berman are in the driver’s seat for the latest Midtown Manhattan office-to-residential conversion.

The leaders of Quantum Pacific and Metro Loft Management, respectively, secured an $88 million bridge loan for the redevelopment of 845 Third Avenue, the Commercial Observer reported. Bank Hapoalim issued the debt to the partners.

The loan will facilitate the conversion of the 350,000-square-foot property, which has been an office for more than six decades. Neither of the developers behind the project responded to requests for comment from the publication.

It’s also unclear if Rudin, which owned the building, has any involvement with the development going forward.

In the fall, Rudin landed a $350 million recapitalization for the Midtown East property, led by a $250 million construction loan courtesy of BDT & MSD Partners.

That financing package, however, also included Quantum Pacific paying $80 million for a stake in the project, making it a 75 percent equity partner. With Metro Loft on the scene, Rudin appears to be transitioning away from its ownership of the building, limiting the number of cooks in the kitchen.

Rudin filed plans in September to turn the 21-story Manhattan office into a 411-unit apartment building, as well as 9,100 square feet of retail space on the ground floor and residential amenities like a party room, a gym, a spa, a sauna, a plunge pool, media rooms and coworking spaces.

The unit count has since expanded to 529, according to the Observer.

Back when Rudin was leading the redevelopment, the conversion was expected to cost approximately $41.7 million and utilize the 467m tax abatement program, meaning 25 percent of the units would be set aside as affordable housing. Specifics are less certain today.

Late last year, Metro Loft, GFP Real Estate and Rockwood Capital secured an $835 million refinancing package from Apollo and GIC for a 1,320-unit office-to-residential conversion at 25 Water Street. The Financial District project, formerly a 1.1-million-square-foot office property, is one of the largest office-to-resi conversions in U.S. history.

Around the same time, Metro Loft and Quantum Pacific filed plans for a 614-unit office-to-residential conversion at 101 Greenwich Street. The partners bought the 26-story property from BentallGreenOak for more than $100 million.

— Holden Walter-Warner