Naftali Credit Partners has closed a $203 million loan for an office-to-residential conversion of 221 West 41st Street, a 25-story building in Midtown, Manhattan. The financing was structured for Yellowstone Real Estate Investments and marks the tenth deal from Naftali Credit Partners’ second opportunistic debt fund. According to the announcement, the loan will refinance existing bridge debt and cover construction-related costs tied to the office-to-residential conversion. The property is located between Seventh and Eighth Avenues.
Originally built in 1921, 221 West 41st Street was designed by architecture firm Willauer, Shape, and Bready. Twenty-five percent of the converted residential units will be designated as affordable housing under New York City’s 467-m program, while the rest will be market-rate. Residential amenities are slated to include a fitness center, spa, golf simulator, lounge, and outdoor terrace.
221 West 41st Street, via Google Maps.
Beyond residential space, plans also call for ground-floor retail frontage on West 42nd Street, which is planned to be anchored by Smartech’s first North American flagship.
The property sits just south of Times Square in Midtown West, with nearby access to the Times Square–42nd Street, 42nd Street–Bryant Park, and 42nd Street–Port Authority Bus Terminal subway stations, along with Penn Station and Grand Central Terminal nearby.
“As New York City continues to navigate the evolution of its office market, we see strong opportunity in well-located office-to-residential conversions that bring new housing to dynamic neighborhoods,” said Glenn Grimaldi, CEO of Naftali Credit Partners. “221 West 41st Street is uniquely positioned steps from Times Square, and Yellowstone has demonstrated a disciplined approach to acquiring and repositioning complex assets.”
Subscribe to YIMBY’s daily e-mail
Follow YIMBYgram for real-time photo updates
Like YIMBY on Facebook
Follow YIMBY’s Twitter for the latest in YIMBYnews
220 west 42nd st is the front facing address
No one really wants to live there. Midtown apartments are a strange location.
How much of the office space is currently occupied or is the building vacant?
Why not hotel? Can’t get more central to the theatre district than this.
It’s a nice building. Let’s hope it’s restored well and the base also matches the historic facade above.
*Amenities*
15 minutes of sunlight daily!
Less skin cancer and faded furniture.
Do not believe this reaches back to 42nd St, per BroTown comment.
It doesn’t. It backs up to the Candler building. I don’t know where they get 25 floors.
This is the back spur of the Candler building. They are one in the same.
Who in the world wants to live a block away from the Port Authority Bus Terminal?