- Office buildings secured the two largest real estate loans in March, led by Milstein Properties’ $645M refinancing of 22 Vanderbilt in Midtown.
- Multifamily developments captured a major share of the month’s financing, with notable loans in East New York, Lincoln Square, and Sunset Park.
- Major lenders included JPMorgan Chase, Blackstone Group, and S3 Capital, highlighting steady interest across office, rental, and life sciences sectors despite broader market headwinds.
Office Sector Leads the Way
New York’s office leasing market showed continued strength in March, and lenders followed suit, per The Real Deal.
The top two real estate loans of the month went to office properties, including Milstein Properties’ 22 Vanderbilt and the Woolworth Building’s office portion.
Milstein secured a $645M loan from JPMorgan Chase to refinance 22 Vanderbilt, the rebranded and renovated tower formerly known as 335 Madison Avenue. Designed by SHoP Architects, upgrades included a new lobby, wellness amenities, and high-end dining and conference spaces. New tenants like Bain & Company have helped reposition the building as a competitive Class A asset.
Meanwhile, Witkoff Group and Cammeby’s International Group received $278.9M from Blackstone to refinance the Woolworth Building’s office space. The landmark property in Tribeca continues to be a prized asset, separate from its residential condo conversion.
Multifamily Loans Hold Strong
Residential rentals also captured a major portion of March’s lending activity. Gotham Organization, Monadnock Development, and the Christian Cultural Center secured $259.7M from city agencies to build a 453-unit affordable housing project at 12020 Flatlands Avenue in East New York.
In Manhattan’s Lincoln Square, Glenwood Management received $231M from the state Housing Finance Agency to refinance its 339-unit tower at 160 West 62nd Street, known as Hawthorn Park.
Brooklyn’s Sunset Park saw S3 Capital issue a $210M loan to Watermark Capital for a 28-story, 497-unit development project, further cementing multifamily’s appeal to lenders.
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Beyond Office and Multifamily
Diversification beyond office and residential sectors was also evident. Deutsche Bank provided $140.8M for the Innolabs life science building in Long Island City, while Apollo Global Management funded a $178M refinancing for NYU’s Lafayette Hall dormitory in Tribeca.
These projects highlight lenders’ growing interest in specialized asset classes like life sciences and student housing, which offer strong fundamentals even in a shifting real estate market.
Why It Matters
Despite headwinds in commercial real estate, top-tier office buildings and essential residential projects continue to draw substantial lender interest in New York City. Loans for large-scale developments and refinancings show confidence in core sectors, while niche assets like life sciences hubs and student housing facilities add important diversification.
What’s Next
Expect office and rental properties to dominate New York’s lending scene through 2025, particularly for projects that combine strong locations, modern amenities, and sector resilience. As interest in life sciences and affordable housing grows, financing activity across these categories could increase further, even as broader market challenges persist.
