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Yellowstone Secures $480 Million Loan to Convert 1740 Broadway Into 420 Residences

The financing shows lender confidence in office-to-residential conversions and could speed delivery of luxury housing in Midtown Manhattan.

Overview

  • The $480 million construction loan from Madison Realty Capital closed in mid-June and was arranged by Ackman-Ziff to fund the conversion of the 27-story former MONY building at 1740 Broadway.
  • Yellowstone will turn the 523,000–600,000 square foot tower into 420 homes, split into 238 rental apartments and 182 condominiums, with an expected completion in the third quarter of 2029.
  • Project plans call for more than 60,000 square feet of amenities, including a 22,000-square-foot sports club, a spa with a 60-foot lap pool, coworking and private club spaces, and an entertainment speakeasy.
  • Yellowstone gained control of the asset in 2024 by buying Blackstone’s defaulted CMBS loan for roughly $200 million and has since raised capital and secured other conversion financings this year.
  • The deal underscores a wider trend of lenders financing office-to-residential projects in New York City, preserves existing ground-floor tenants such as Sweetgreen, Sugarfish and Citibank, and could add new housing choices in Midtown.