- Yellowstone secured $203M in debt for office-to-resi conversion of 220 West 42nd Street.
- The project will deliver 176 multifamily units, with at least 44 affordable, plus 18,000 KSF retail space.
- Bank Hapoalim and Naftali Credit Partners provided both senior and mezzanine debt.
- Plan replaces a previously considered 265-key hotel at the Times Square site.
Lending Backs Pivot to Residential
Yellowstone Real Estate Investments has secured $203M in debt financing to convert the 25-story former office building at 220 West 42nd Street into a residential property, according to The Real Deal. Bank Hapoalim led the lending, with Naftali Credit Partners supplying an additional $36M in mezzanine debt, arranged by IPA Capital Markets.
Project Details
The office-to-resi conversion will create 176 new multifamily units within 221,000 KSF, including at least 44 affordable units as part of a city housing program. The development will also bring 18,000 KSF of retail to the Times Square area.
Shift from Hotel to Multifamily
Yellowstone previously planned a 265-key hotel at the site but pivoted to residential in August 2025. This shift reflects tighter hotel rules in New York City that now require special permits. At the same time, similar large-scale conversions across the city continue to secure major financing, reinforcing momentum behind adaptive reuse strategies. These changes have slowed new hospitality development and redirected capital toward housing.
Transaction History and Context
Yellowstone acquired the property in 2022 via deed-in-lieu of foreclosure, valuing it at $161.1M, after taking over the previous $150M loan. The building, once a mixed-use asset and temporarily housing over 1,000 migrants, is set for full conversion into office-to-resi apartments as part of Yellowstone’s redevelopment strategy.
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