Bank Hapoalim USA, the US arm of the Israeli bank, announced it will provide $167 million in financing to Yellowstone, controlled by Yakir Gabay, for the conversion of an office tower on 41st Street in Manhattan into a residential building.
In addition, the bank will provide $36 million in mezzanine financing, bringing the total funding for the project to $203 million. The project will include 176 apartments, 44 of which will be designated as affordable housing.
The move comes amid Manhattan real estate market trends marked by a shortage of residential units alongside an oversupply of office space, driving conversions of offices into housing.
Yellowstone has additional projects in Manhattan, including on Broadway, Lexington Avenue and 57th Street. The group’s US activity is carried out in partnership with Israeli and international institutional investors. The operations are managed by CEO Tzachi Hara, while Bank Hapoalim USA is led by Gil Karni.