Dealmaker: Walker & Dunlop Arranges $867M for Office-to-Residential Conversion
(111 Wall Rendering. Credit: Gensler)
Walker & Dunlop, Bethesda, Md., arranged a $778.6 million construction loan for 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 marked the largest single-building office-to-residential conversion loan in 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 currently a fully vacant 24-story office tower being converted into a 30-story residential rental community. The project includes a five-story overbuild and a fully redesigned lobby and will include more than 1,500 rental units with more than 899,000 rentable square feet. The redevelopment will also include 7,000 rentable square feet of ground-floor retail. Approximately one-quarter of the units will be designated as affordable housing for residents earning an average of 80% of Area Median Income, 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,” Stolly noted. “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strong, and projects like 111 Wall Street address both the growing need for housing and the repositioning of outdated, underutilized office assets.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.”
