BHI, the US commercial banking arm of Bank Hapoalim, said on Tuesday that it had provided an $88 million bridge loan to Idan Ofer’s real estate arm and Metro Loft for the acquisition of 845 Third Avenue in Midtown East Manhattan. The bank states that the financing aims to restructure the property’s capital as the partners transition the office building into residential use.
The 21-story property spans about 350,000 square feet and is slated to be redeveloped into a 529-unit rental tower in Manhattan. The borrower is a special purpose entity created for the asset and jointly owned by Idan Ofer’s real estate arm and Metro Loft in a market that has recently seen other high-profile Israeli-linked real estate activity in New York.
Metro Loft will oversee the completion of design, zoning optimization, and execution planning for the project, according to the statement. The company specializes in office-to-residential conversions in Manhattan.
Gil Karni, CEO of BHI, said New York City remains one of the world’s most important real estate markets and that the bank sees continued value in supporting major redevelopment projects there. He said the transaction reflected the combination of strong partners, capital, and a defined development vision.
The financing follows recent Jerusalem Post reporting on BHI’s activity in Manhattan, including Bank Hapoalim’s US arm funding a separate $203 million housing conversion in the city. Other recent coverage has highlighted Bank Hapoalim’s overseas bond sale, Dan Hotels’ Manhattan acquisition, and another Israeli-linked New York property case.
BHI said it provides commercial banking services across sectors, including real estate, corporate banking, healthcare, renewable energy, technology, and sponsor finance. Metro Loft, founded by Nathan Berman in 1997, has previously completed conversion projects at 443 Greenwich Street, 20 Exchange Place, and 63 Wall Street.
If completed as planned, the redevelopment of 845 Third Avenue would turn roughly 350,000 square feet of former office space into 529 rental apartments in Midtown East.
Source:
www.jpost.com
