BHI, the U.S. arm of Bank Hapoalim, has handed an $88 million recapitalization loan to a Quantum Pacific Realty and Metro Loft ownership group for 845 Third Avenue in Midtown East, giving the 21-story office tower a fresh shot at life as hundreds of rental apartments. The new financing lands as developers and lenders keep working to flip aging Midtown office stock into housing, with institutional debt starting to firm up as projects move from the drawing board toward actual construction.
Loan details and bank statement
The $88 million facility went to Quantum Pacific Realty and Metro Loft, according to Connect CRE, which published a statement from Ilana Druyan, BHI’s SVP for international CRE origination. "New York City represents one of the most dynamic and consequential real estate markets in the world," Druyan said, adding that projects like this show what is possible when capital and partners line up.
What the building is and earlier filings
Rudin Management had previously filed Department of Buildings applications to convert the 21-story property, with an earlier submission outlining about 411 residential units and a job cost of roughly $41.7 million, according to city filings cited by PincusCo. Public records and trade coverage indicate that Quantum Pacific acquired a controlling stake in the asset in late 2025, reshuffling the ownership structure ahead of the recapitalization.
Recap stack and prior coverage
Industry reporting last fall detailed how Rudin was lining up an approximately $350 million recapitalization for 845 Third Avenue that would feature a sizable construction loan and a new equity partner, a package intended to anchor the conversion work, according to The Real Deal. The new Connect CRE report characterizes the $88 million BHI facility as a recapitalization slice that sits ahead of a full residential conversion now being driven by the current ownership team.
Who’s running the conversion
Quantum Pacific Realty, the real estate arm of the Quantum Pacific Group, has been building a portfolio of Manhattan office-to-residential conversion plays, while Metro Loft, founded in 1997 by Nathan Berman, focuses on exactly that niche, per Connect CRE. Their local pipeline and recent acquisitions include other Midtown assets that are being positioned for similar overhauls, giving the partnership a track record with this type of transformation.
Why lenders are leaning in
Bank Hapoalim has already shown it is willing to finance this kind of play in Midtown. Public reporting notes that the bank backed earlier Metro Loft deals in the neighborhood, signaling an ongoing lending relationship with sponsors that specialize in conversions, according to PincusCo. That history, paired with steadily rising demand for housing in the borough, helps explain why institutional lenders are stepping back into these recapitalizations as owners rethink how to deploy older office buildings.
Next steps and timing
The Connect CRE report did not provide a construction start date for the BHI-backed piece of the capital stack. Earlier coverage of the property suggested that conversion work was expected to launch once existing tenants were out and financing was fully nailed down. The precise schedule for tenant relocation, permitting and any construction kickoff will hinge on when the ownership group finalizes its overall capital structure and secures the needed approvals, according to prior trade reporting in The Real Deal.
