Walker & Dunlop announced that it has arranged a $778.6 million construction loan to facilitate the office-to-residential conversion of 111 Wall Street, located along the East River waterfront in Lower Manhattan’s Financial District. The closing of this financing marks the largest single-building office-to-residential conversion loan in New York City history, and the country.
The Walker & Dunlop Capital Markets Institutional Advisory Practice arranged the loan on behalf of InterVest capital partners, a global alternative investment manager. 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 & Co. 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.
Built in 1968, 111 Wall Street is a 24-story, fully vacant office tower being converted into a 30-story luxury residential rental community. The project includes a five-story overbuild, a fully redesigned lobby and will feature approximately 1,568 rental units across more than 899,000 rentable square feet, including open layouts, perpetually protected water views, condo-level finishes, and over 100,000 square feet of luxury amenities. The redevelopment will also include 7,000 rentable square feet of ground floor retail. Approximately 25% of the units will be designated as affordable housing for residents earning an average of 80% of area median income (AMI), qualifying the project for New York City’s Affordable Housing Conversion Program.
“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strong, and projects like 111 Wall Street address both the growing need for housing and the repositioning of outdated, underutilized office assets. This project underscores continued investor confidence in large-scale adaptive reuse in core urban markets. We are pleased to work with InterVest, its development partners, and trusted lenders on this transformative conversion.”
The amenity program is designed to rival luxury condominium offerings and position 111 Wall Street as a premier downtown Manhattan rental property. Highlights include a wellness and recreation suite with a spa, golf simulator, bowling alley and social lounges; a full-service, state-of-the-art fitness center, café and co-working spaces and a signature rooftop with climate-controlled basketball and padel courts and New York 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 a 24/7 lobby, concierge services, tenant storage, and a curated mix of lifestyle spaces.
“111 Wall Street exemplifies InterVest’s commitment to identifying and executing complex, value-add opportunities in dynamic urban markets,” said Michael Gontar, CEO at InterVest capital partners. “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 positions it to attract strong and sustained tenant interest. Adaptive reuse projects like this are a hallmark of one of our investment strategies, transforming underutilized assets into best-in-class residential communities that serve growing populations, revitalize neighborhoods, and address the housing shortage in New York City.”
The development team includes MetroLoft Development as developer, Collaborative Construction Management as construction manager, Gensler as architect of record and Corcoran New Development as marketing and leasing agent.
