Manhattan Office Conversion Secures $93.5M Financing Amid NYC Incentive Push

Event summary

  • IPA Capital Markets, a division of Marcus & Millichap, arranged $93.5 million in construction financing for the conversion of 830 Third Avenue in Manhattan.
  • The project involves converting a 13-story office building (147,101 sq ft) into 188 rental apartments.
  • The development will leverage New York State’s 467-m affordable housing office-to-residential conversion tax incentive program.
  • IPA Capital Markets closed $913 million in office-to-residential conversions in NYC during 2025.
  • The financing team included Marko Kazanjian, Max Herzog, Max Hulsh and Andrew Cohen.

The big picture

The deal highlights the ongoing trend of office-to-residential conversions in New York City, driven by excess office space and state incentives. Marcus & Millichap’s IPA Capital Markets is actively facilitating this shift, demonstrating a significant role in the city’s real estate financing landscape. The $93.5 million financing underscores the continued investor interest in adaptive reuse projects, but also introduces a dependency on government programs.

What we're watching

Incentive Dependence
The project's reliance on a specific state tax incentive program introduces risk; changes to the 467-m program could impact future conversions and profitability.
Conversion Velocity
The pace at which Marcus & Millichap can deploy its $913 million 2025 office-to-residential conversion pipeline will indicate the firm’s capacity and appetite for similar deals.
Market Saturation
Increased office-to-residential conversions in Manhattan could eventually lead to oversupply and impact rental rates, requiring careful assessment of local demand.

Related topics

Financial Services