Two years after Isaac Hera’s Yellowstone Real Estate Investments bought the debt at 1740 Broadway, it’s advancing the project with a loan of its own.
Yellowstone secured $480 million in construction financing for its office-to-residential conversion of the historic MONY building from Madison Realty Capital, Hera announced on LinkedIn.
In April 2024, Hera’s firm paid nearly $200 million to acquire the roughly 600,000-square-foot building. Blackstone had defaulted on its loan on the property two years prior.
Hera’s firm plans to develop the Midtown office building into a 422-unit mixed-use property with 182 luxury condos and 238 rental apartments.
Located on the corner of Broadway between West 55th Street and West 56th Street, the building inspired the 1968 single “Mony Mony” by Tommy James and the Shondells. The song title came from the sign at the top of the building, an acronym for the property’s original owner, Mutual of New York.
Ackman-Ziff’s Jason Krane, Simon Ziff and Russell Schildkraut arranged the financing.
The Promote first reported the news.
The building is also slated to include over 60,000 square feet of amenities, including a 22,000-square-foot sports club, a private club, a resort-like spa with a 60-foot lap pool and an entertainment lounge with a bowling alley and golf simulator, Hera wrote.
The property will also have pet amenities, including an indoor dog run and grooming center, a porte-cochére and a residents’ lounge with a 950-square-foot lounge pool.
Reuveni will be marketing the property.
The conversion project at 1740 Broadway represents the latest ambitious entry into the line of conversion projects sweeping through the city. Metroloft and David Werner are underway on their roughly 1,500-unit conversion of the former Pfizer building at 219-235 East 42nd Street. And a trio of big-name developers, Scott Rechler’s RXR, Marc Holliday’s SL Green and Marc Rowan’s Apollo Global Management, are turning 5 Times Square into about 1,250 residential units.
In New York City, conversion projects account for more than 16,000 planned rental units, roughly doubling the pipeline for the next most active city.
Hera’s firm has been particularly active in the conversion space. In March, Yellowstone secured $203 million in debt for its project at 220 West 41st Street, where it plans to turn the 25-story office building into a 221,000-square-foot multifamily building with 176 units and 18,000 square feet of retail space.
In January, Yellowstone took out a $326 million construction loan from Barings for a hotel-to-residential conversion project at the former Watson Hotel at 440 West 57th Street, where it planned to deliver 316 units across two towers.
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Yellowstone plans 422-unit conversion in Midtown West
Yellowstone secures $203M loan for office-to-resi conversion
Yellowstone drops approximately $200M on 1740 Broadway debt
Jake Indursky
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