Arrow Real Estate Advisors announced the successful arrangement of $61 million in financing for the acquisition of 5 Hanover Square, a 300,000-square-foot office building in Manhattan’s Financial District. The financing supports a joint venture between Samual Fisch and David Werner and was bifurcated to accommodate separate executions, allowing for the sponsor to leverage the property’s existing condominium structure. The financing was arranged by Arrow Real Estate Advisors’ Founder and Managing Partner Morris Betesh, Senior Vice President Morris Dabbah and Louis Halperin, associate.
The 24-story building is currently 41% occupied with approximately 144,366 square feet of vacant office space, including eight full floors of entirely vacant space. The financing package, which closed on July 2nd, 2025, was structured to support the building’s dual strategy and included two distinct components.
Arrow arranged a $40 million acquisition and pre-development loan from 99c for the upper 266,639 square feet, which is slated for an office-to-residential conversion. This transitional financing will provide the borrower with both the capital and flexibility to advance their business plan. For the lower five floors, leased long-term to a school, Arrow arranged a $21 million acquisition loan from Deutsche Bank which provided a fixed-rate solution aligned with the stabilized profile of the lower-level condominium unit.
“This transaction required creativity and vision,” Betesh said. “It demanded capital partners who understood the complexity, could move quickly and offer the right amount of flexibility to allow sponsorship to execute their business plan. Finding those partners was key to getting the deal done — and we continue to see capital gravitating toward well-located office assets with a clear path to repositioning.”
The structure presented unique challenges, including the coordination of two distinct loans with separate business plans under a tight 45-day closing window. Arrow’s ability to strategically bifurcate the asset by its condominium components—stabilized and transitional — allowed the firm to maximize proceeds while providing tailored financing solutions for each portion of the property.
