NEW YORK CITY — Walker & Dunlop Inc. has arranged an $867 million financing package for 111 Wall Street, a 24-story, waterfront office building in Lower Manhattan’s Financial District. The development team, led by borrower InterVest capital partners, a global alternative investment manager based in New York City, plans to convert the fully vacant office building into a 30-story luxury apartment building housing 1,568 rental units.
Approximately 25 percent of the units will be designated as affordable housing for residents earning an average of 80 percent of the area median income (AMI), qualifying the project for New York City’s Affordable Housing Conversion Program.
Dustin Stolly, Aaron Appel, Adam Schwartz, Keith Kurland, Jonathan Schwartz, Sean Reimer and Sean Bastian of Walker & Dunlop arranged a $778.6 million construction loan through Apollo Global Management, J.P. Morgan Chase & Co. and TYKO Capital. The closing of this financing marks the largest single-building office-to-residential conversion loan in New York City history as well as the country, according to Walker & Dunlop.
Walker & Dunlop also advised on the extension of an existing $88.4 million C-PACE loan from Petros that remained in the capitalization, bringing the total financing package to $867 million.
“With office vacancies still elevated post-pandemic, we are seeing developers and global capital providers increasingly turning to residential conversions as a practical path forward,” says Stolly. “Manhattan’s apartment demand remains exceptionally strong, and projects like 111 Wall Street address both the growing need for housing and the repositioning of outdated, underutilized office assets. We are pleased to work with InterVest, its development partners and trusted lenders on this transformative conversion.”
The design-build team includes locally based MetroLoft Development (developer), Collaborative Construction Management (construction manager), Gensler (architect of record) and Corcoran New Development (marketing and leasing). The 899,000-square-foot adaptive reuse project will include developing five new floors at 111 Wall Street, as well as a fully redesigned, 24/7 lobby and more than 100,000 square feet of luxury amenities. The redevelopment will also include 7,000 rentable square feet of retail space on the ground level.
Amenities will include a wellness and recreation suite with a spa, golf simulator, bowling alley and social lounges; fitness center, café and coworking spaces; and a rooftop amenity deck with climate-controlled basketball and padel courts and the city’s only rooftop NBA regulation court, along with a pool, jogging track, outdoor fitness area and panoramic views of the waterfront and Manhattan and Brooklyn skylines. Additional amenities include concierge services and tenant storage.
Originally built in 1968, 111 Wall Street is located along South Street and the East River waterfront. Future tenants will have perpetually protected views of the East River, Brooklyn skyline and the Brooklyn and Manhattan bridges.
“This project captures the evolving demand for high-quality residential living in Lower Manhattan,” says Michael Gontar, CEO at InterVest. “The building’s scale, prime waterfront location and exceptional amenity offering positions it to attract strong and sustained tenant interest.”
— John Nelson