Issac Hera Scores $480M Loan For Mony Building Conversion
The building that inspired Tommy James’ song Mony Mony just landed a loan for some serious money, money.
Yellowstone Real Estate Investments secured $480M from Madison Realty Capital for its office-to-residential conversion of 1740 Broadway.
The 27-story office tower, formerly known as the Mutual of New York Building, occupies a full city block between 55th and 56th streets, just south of Columbus Circle. The building, constructed by the Mutual Life Insurance Co., once bore a sign that read “MONY.”
In 2008, under Vornado Realty Trust’s ownership, the sign was replaced with the illuminated numerals 1740, a reference to the building’s address. A 150-foot-tall star, once used to forecast the weather, is also perched on the roof — though it no longer flashes lights to signal updates to the public.
Now, the tower will undergo another transformation. Yellowstone plans to convert the 523K SF building into 420 luxury residences, consisting of 238 rental units on the third through 13th floors and 182 condominiums on the 14th through 27th floors
Additionally, plans call for more than 60K SF of amenities, including a coworking lounge, private club, pet play area, and spa with a 60-foot lap pool. Its 22K SF fitness center will feature training studios, a boxing ring and a sports bar.
The building’s original bank vault will hold a concealed speakeasy bar.
The property also has 18K SF of ground-floor retail, currently leased to three tenants that will remain operational throughout redevelopment.
On LinkedIn, Yellowstone CEO Issac Hera said the conversion will blend the building’s “rich history with exceptional design and an unmatched amenity program.”
Hera took hold of the office tower, paying less than $200M for the building’s debt, in 2024. Blackstone paid $605M to acquire it in 2014, then defaulted on the loan during the pandemic. That resulted in the first losses to holders of AAA-rated CMBS bonds since the Great Recession.
The 1740 Broadway move is part of a recent opportunistic playbook for Hera. He’s similarly picked up notes tied to the New Yorker Hotel and the former Maxwell Hotel.
Adaptive reuse projects are in the works across the firm’s portfolio. In January, Yellowstone landed $326M to convert the Watson Hotel-turned-migrant shelter into apartments. Then, in March, the developer secured another $203M loan for an office-to-residential conversion of the Candler Building.
Earlier this month, Yellowstone raised $207M through bond issuance on the Tel Aviv Stock Exchange, Hera previously announced.
Madison Realty Capital is equally experienced with conversion projects, having provided a $720M loan for Metro Loft and David Werner’s conversion of the former Pfizer headquarters on 42nd Street.
“1740 Broadway is a prime office-to-residential conversion that checks every box with strong sponsorship, a great location, and robust demand in Midtown Manhattan for both for-sale and rental housing,” Madison Realty Capital co-founder and Managing Principal Josh Zegen said.
