300 East 42nd Street

Project Overview

Transaction Challenges:

The acquisition involved a complex repositioning strategy, converting a large Midtown East office building into multifamily residential use in a volatile market. Challenges included structuring financing that would accommodate a transitional asset, aligning with the city's evolving zoning and policy landscape, and allowing for future use of the 467-m tax abatement program. Timing was critical, as the borrower needed immediate capital to close the deal while retaining flexibility for an extended pre-development and permitting timeline.

Transaction Challenges:

The acquisition involved a complex repositioning strategy, converting a large Midtown East office building into multifamily residential use in a volatile market. Challenges included structuring financing that would accommodate a transitional asset, aligning with the city's evolving zoning and policy landscape, and allowing for future use of the 467-m tax abatement program. Timing was critical, as the borrower needed immediate capital to close the deal while retaining flexibility for an extended pre-development and permitting timeline.

Transaction Challenges:

The acquisition involved a complex repositioning strategy, converting a large Midtown East office building into multifamily residential use in a volatile market. Challenges included structuring financing that would accommodate a transitional asset, aligning with the city's evolving zoning and policy landscape, and allowing for future use of the 467-m tax abatement program. Timing was critical, as the borrower needed immediate capital to close the deal while retaining flexibility for an extended pre-development and permitting timeline.

ArrowREA Solution:

Arrow Real Estate Advisors secured $45 million in flexible acquisition financing. Arrow’s team structured the loan to provide the borrower with immediate capital and long-term optionality, enabling them to pursue the residential conversion with confidence. The financing preserved design and entitlement flexibility while supporting the client’s vision of contributing much-needed housing in Midtown East, marking another successful example of Arrow’s ability to navigate complex repositioning strategies.

ArrowREA Solution:

Arrow Real Estate Advisors secured $45 million in flexible acquisition financing. Arrow’s team structured the loan to provide the borrower with immediate capital and long-term optionality, enabling them to pursue the residential conversion with confidence. The financing preserved design and entitlement flexibility while supporting the client’s vision of contributing much-needed housing in Midtown East, marking another successful example of Arrow’s ability to navigate complex repositioning strategies.

ArrowREA Solution:

Arrow Real Estate Advisors secured $45 million in flexible acquisition financing. Arrow’s team structured the loan to provide the borrower with immediate capital and long-term optionality, enabling them to pursue the residential conversion with confidence. The financing preserved design and entitlement flexibility while supporting the client’s vision of contributing much-needed housing in Midtown East, marking another successful example of Arrow’s ability to navigate complex repositioning strategies.