Naftali Provides $203M in Financing for Office-to-Residential Conversion Project in Manhattan

by Taylor Williams

NEW YORK CITY — Naftali Credit Partners, an alternative lender and subsidiary of global investment firm Naftali Group, has provided $203 million in financing for an office-to-residential conversion project in Midtown Manhattan. The financing comprises a $167 million senior loan and a $36 million mezzanine loan. The borrower is private equity firm Yellowstone Real Estate Investments, and the property in question is the 25-story building at 221 West 41st St., which was originally constructed in 1925. The converted building will include a 25 percent affordable housing component and amenities such as a fitness center, spa, golf simulator, lounge and an outdoor terrace. A construction timeline was not announced.

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