【NYC Real Estate】Madison Realty Capital Lends $480M on 1740 Broadway Office-to-Resi Conversion
- ARCFE U.S.
- Jun 22
- 2 min read
The transformation of Midtown Manhattan's commercial core has taken a massive leap forward as Yellowstone Real Estate Investments officially secured a $480 million loan to convert the 27-story office tower at 1740 Broadway into luxury apartments and condominiums. Prominent real estate private equity firm Madison Realty Capital originated the massive construction loan, which will facilitate the creation of a 420-unit residential landmark. Located between West 55th and West 56th streets, the project is scheduled for completion in the third quarter of 2029, signaling immense capital confidence in the future of Midtown’s high-end housing sector.
According to the official project scope, the extensive conversion will yield 238 rental apartments and 182 luxury condominiums. Beyond the residences, the developers are planning more than 60,000 square feet of world-class amenity space. This includes a massive 22,000-square-foot sports club, a private spa featuring a 60-foot indoor lap pool, a speakeasy bar, a resident lounge, and a landscaped sun deck. The ground floor will also feature 18,055 square feet of prime retail space, which is currently fully leased to high-traffic tenants including Sweetgreen, Sugarfish, and Citibank.
The financing package was seamlessly negotiated by the premier capital advisory firm Ackman-Ziff, with a team led by Jason Krane, Russ Schildkraut, and Simon Ziff. This landmark deal represents Madison Realty Capital’s second major office-to-residential conversion in Midtown Manhattan, following their $720 million construction loan for the conversion of the former Pfizer headquarters on East 42nd Street in May 2025. Josh Zegen, Co-Founder and Managing Principal of Madison Realty Capital, noted that 1740 Broadway checks every box for a successful conversion: strong sponsorship, a great transit-oriented location, and robust market demand for both rental and for-sale housing in Midtown.
For EB-5 investors, this $480 million financing package serves as a powerful testament to the underlying strength of the New York City residential market. Major institutional lenders continue to deploy massive amounts of capital into multifamily and residential conversion projects, recognizing that the demand for high-quality housing in Manhattan remains insatiable. The trend of converting functionally obsolete Class B office buildings into modern, transit-oriented luxury housing not only addresses the city's housing shortage but also creates highly secure, asset-backed investment opportunities with exceptionally strong institutional sponsorship.
Source: Commercial Observer
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