Madison Realty Capital Provides $480M for 1740 Broadway Conversion

• Madison Realty Capital originated a $480 million loan for the conversion of 1740 Broadway into a 420-unit residential development.
• Yellowstone Real Estate Investments plans to transform the 27-story Midtown Manhattan office tower into 238 apartments and 182 condominiums.
• The project is expected to be completed in the third quarter of 2029 and will feature more than 60,000 square feet of amenities.

What the Financing Supports at 1740 Broadway

Madison Realty Capital has provided a $480 million loan to Yellowstone Real Estate Investments for the conversion of 1740 Broadway, a 27-story office building in Midtown Manhattan, into a large-scale residential development. Located between West 55th and West 56th Streets, the project will transform the office property into a 420-unit mixed residential community consisting of 238 rental apartments and 182 condominium units. The conversion reflects the continued momentum behind office-to-residential redevelopment across New York City as owners seek new uses for aging office inventory.

What Yellowstone Plans for the Property

The redevelopment will create a luxury residential offering in one of Manhattan's most established neighborhoods. Beyond the residential units, the project will include more than 60,000 square feet of amenity space designed to compete with newly built luxury developments. Planned amenities include a 22,000-square-foot sports club, a spa featuring a 60-foot lap pool, a speakeasy-style bar, resident lounges, and a sun deck. The building will also retain approximately 18,055 square feet of ground-floor retail space currently occupied by Sweetgreen, Sugarfish, and Citibank. The project is scheduled for completion in the third quarter of 2029.

What Josh Zegen Said About the Deal

Josh Zegen, co-founder and managing principal of Madison Realty Capital, highlighted the property's location and the growing demand for both rental and for-sale housing in Midtown Manhattan. According to Zegen, the financing benefited from Madison Realty Capital's experience with similar conversion projects, including the firm's $720 million loan for the redevelopment of the former Pfizer headquarters at 219 and 235 East 42nd Street. The transaction also reflects Madison Realty Capital's existing relationship with Yellowstone Real Estate Investments, helping facilitate what the lender described as a complex financing package delivered on an accelerated timeline.

What This Means for Manhattan's Office Conversion Trend

The 1740 Broadway financing adds another major project to New York City's expanding office-to-residential pipeline. As developers continue evaluating underutilized office assets, conversions are becoming an increasingly attractive solution for creating housing while revitalizing older commercial buildings. With 420 planned residential units and a substantial amenity package, the redevelopment represents one of the larger office conversion projects currently moving forward in Midtown Manhattan. The deal also underscores lenders' growing willingness to back well-located conversion opportunities as demand for housing remains strong throughout the city.