Marcus & Millichap’s IPA Capital Markets secured a $93.5 million loan from Deutsche Bank to fund the conversion of a 13‑story, 147,101‑square‑foot office building at 830 Third Avenue in Manhattan into 188 rental apartments. The project will create 124 studio units, 60 one‑bedroom units, and four two‑bedroom units, and will be financed under New York State’s 467‑m affordable‑housing conversion incentive program.
The developer partnership behind the conversion is a joint venture between Namdar Realty Group and Empire Capital Holdings. The financing arrangement positions the project to benefit from the state incentive, which offers tax credits for converting office space into affordable housing, and aligns with the city’s push to repurpose under‑utilized office assets amid rising vacancy rates.
Marcus & Millichap’s broader strategy is to diversify beyond brokerage commissions by expanding its capital‑market services. In the third quarter of 2025, the firm reported a 15.1 % year‑over‑year revenue increase to $193.9 million, with financing fees rising 27.7 % and the company returning to marginal profitability. The new loan adds a steady debt‑service stream that helps offset the cyclical nature of commercial brokerage income and supports the firm’s goal of capturing value in the high‑growth residential market.
The conversion reflects a broader trend in Manhattan, where office vacancy rates have climbed while the demand for housing remains strong. New York State’s 467‑m program has become a key catalyst for such projects, and IPA Capital Markets closed $913 million in office‑to‑residential conversions across New York City in 2025, underscoring the firm’s growing footprint in this niche. The 830 Third Avenue project is expected to generate rental income that will contribute to the firm’s long‑term revenue mix and provide potential appreciation as the building transitions to a mixed‑use asset.
By adding a new residential component, Marcus & Millichap not only diversifies its revenue base but also positions itself to benefit from the ongoing shift toward denser, mixed‑use developments in Manhattan. The loan’s structure and the use of state incentives signal strong lender confidence in the project’s feasibility and the broader Manhattan real‑estate environment, reinforcing the firm’s role as a full‑service platform capable of managing complex capital‑market transactions.
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