Walker & Dunlop has arranged a $778.6 million construction loan for the office-to-residential conversion of 111 Wall Street in Lower Manhattan’s Financial District. The closing of the financing is being touted as the largest single-building office-to-residential construction loan in the nation.
The Walker & Dunlop Capital Markets Institutional Advisory Practice arranged the loan on behalf of InterVest capital markets, a global alternative investment manager. The development team includes developer MetroLoft Development, construction manager Collaborative Construction Management, architect of record Gensler, and marketing and leasing agent Corcoran New Development.
Walker & Dunlop’s Dustin Stolly, Aaron Appel, Adam Schwartz, Keith Kurland, Jonathan Schwartz, Sean Reimer, and Sean Bastian arranged the financing from Apollo Global Management, J.P. Morgan Chase, and TYKO Capital. 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,” said Stolly, senior managing director at Walker & Dunlop. “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strong, and projects like 111 Wall Street address both the growing need for housing and the repositioning of outdated, underutilized office assets.”
The 24-story fully vacant office tower, originally built in 1968, will be converted into a 30-story mixed-income rental community. It will include a five-story overbuild; a redesigned lobby; approximately 1,570 rental units with open layouts, condo-level finishes, and perpetually protected water views; and 7,000 square feet of ground floor retail. Approximately 25% of the units will be set aside as affordable housing for households earning an average of 80% of the area median income, qualifying the project for New York City’s Affordable Housing Conversion Program.
The conversion also will feature over 100,000 square feet of luxury amenities, including a wellness and recreation suite with a spa, a golf simulator, a bowling alley, and social lounges; a state-of-the-art fitness center; a cafe; coworking spaces; and a signature rooftop with climate-controlled basketball and padel courts, a jogging track, and an outdoor fitness area.
“111 Wall Street exemplifies InterVest’s commitment to identifying and executing complex, value-add opportunities in dynamic urban markets,” said InterVest CEO Michael Gontar. “This project captures the evolving demand for high-quality residential living in Lower Manhattan. The building’s scale, prime waterfront location, and exceptional amenity offering position it to attract strong and sustained tenant interest.”