BHI, the U.S Branch of Bank Hapoalim, B.M., has provided Yellowstone Partners with $167 million to convert the circa-1912 Candler Building, a 25-story, 221,357-square-foot office building at 221 W. 41st St., into a 176-unit multifamily building. Naftali Credit Partners will provide an additional $36 million in mezzanine financing, bringing the total loan amount to $203 million.
“As New York City continues to navigate the evolution of its office market, we see strong opportunity in well-located office-to-residential conversions that bring new housing to dynamic neighborhoods,” said Glenn Grimaldi, CEO of Naftali Credit Partners.
The apartments will range from studio to two-bedroom unit layouts. It’s expected that 44 apartments will be set aside for households in compliance with the 467-M Affordable Housing conversion program.
Formed as a joint venture between major international institutional investors, Yellowstone acquired the Candler Building in 2022 and initially had plans to convert it to lodging.
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