Marcus & Millichap’s IPA Capital Markets Arranges $93.5M Financing for Manhattan Office-to-Residential Conversion
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mezzanine financingfinancial
Mezzanine financing is a hybrid form of capital that sits between a company’s senior loan and its ownership, typically structured as a subordinated loan or convertible instrument that pays higher interest and may include rights to convert into equity. Think of it like a second mortgage or a booster seat: it carries more risk than the main loan but is less permanent than selling shares. It matters to investors because it can boost returns for lenders, increase a company’s debt burden, and potentially dilute equity if converted, influencing risk and reward.
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Preferred equity is a type of investment that sits between common stock and debt in a company's financial structure. It typically offers investors priority in receiving dividends and getting their money back if the company runs into trouble, making it somewhat safer than regular shares. Investors value preferred equity because it provides a steady income stream while still allowing some participation in the company's success.
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Joint venture equity is the ownership stake a company or investor holds in a business formed and run together with one or more partners. Think of several neighbors pooling money to buy and manage a rental property: each owner’s share determines their share of profits, losses, decision-making influence and liability. For investors, joint venture equity matters because it affects future cash flow, balance-sheet exposure and how much control and risk come from a shared enterprise.
sponsor equityfinancial
Sponsor equity is the ownership stake that a sponsoring party puts into a business deal or investment, often as the sponsor’s own cash or shares. Think of it as the sponsor’s down payment and shows how much skin they have in the game; higher sponsor equity signals stronger alignment with other investors and greater willingness to take risk, which can affect potential returns, dilution and how decisions are made.
office-to-residential conversiontechnical
Office-to-residential conversion is the process of repurposing an office building into housing units, such as apartments or condos, by redesigning interior layouts and updating systems like plumbing and kitchens. For investors it matters because it can change how a property generates income, potentially shifting from volatile short-term commercial leases to steadier rental demand or sales, while also carrying costs and regulatory approvals similar to remodeling a store into a home.
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A tax incentive program is a government policy that reduces a business’s tax bill—through credits, exemptions, lower rates, or refunds—to encourage specific activities like hiring, research, clean energy, or building in certain areas. For investors, it acts like a coupon that lowers a project’s or company’s costs and can boost cash flow, profitability and valuation, so changes or limits to the program can materially affect expected returns.
NEW YORK--(BUSINESS WIRE)--
IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI) specializing in capital markets services for major private and institutional clients,announced today the $93.5 million construction financing for the office-to-residential conversion of 830 Third Avenue in Manhattan. The 13-story building will be converted into 188 rental apartments with a robust amenity program.
IPA Capital Markets’ Marko Kazanjian, Max Herzog, Max Hulsh and Andrew Cohen, based in Manhattan, arranged financing through Deutsche Bank on behalf of the developers, a joint venture between Namdar Realty Group and Empire Capital Holdings. The project will utilize New York State’s 467-m affordable housing office to residential conversion tax incentive program.
“In 2025 alone, our team closed $913 million in office-to-residential conversions across New York City, with additional transactions expected to close over the next 30 days, subject to standard closing requirements, together representing over 2,000 residential units,” said Kazanjian.
Built in 1958, the property was renovated in 1994 and currently consists of 147,101 rentable square feet, with 139,980 rentable square feet of office space and 7,121 square feet of ground-floor retail space. Upon completion, the property will feature 124 studio units, 60 one-bedroom units and four two-bedroom units.
About IPA Capital Markets
IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. Marcus & Millichap closed 7,836 transactions with a sales volume of approximately $49.6 billion in 2024. The company had 1,712 investment sales and financing professionals in more than 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate at year end. For additional information, please visit www.MarcusMillichap.com.
