Lenders for Orda Management’s properties at 225 and 233 Park Avenue South in Manhattan agreed on Apr. 27 to a plan that could convert one of the buildings into residential space, according to a report by Crain’s citing Fitch Ratings. The proposal would separate the two connected buildings and turn the smaller one, 233 Park Avenue South, into apartments.
This development comes after financial difficulties affected the office spaces. In 2024, a $235 million mortgage tied to both properties was sent to special servicing due to high vacancy rates. Orda Management agreed to modify its loan within the past year by contributing equity while a new mezzanine lender provided $150 million in cash.
The possibility of conversion is not certain. Paul Amrich from CBRE, who represents the building, said Orda has “no current desire” to change how the properties are used. The Real Deal reported that Orda could not be reached for comment.
Vacancy has increased significantly at these locations following departures by major tenants such as Meta and Buzzfeed in recent years. Together, the two buildings have about 675,000 square feet of office space with more than 500,000 square feet currently vacant.
Orda had previously put both buildings up for sale in 2019 with an asking price of up to $800 million but was unable to sell them after Manhattan’s office market changed during the pandemic. Estimates from city officials suggest it would cost around $75 million to convert the twelve-story building at 233 Park Avenue South into residential units; this property features large floorplates and tall ceilings. A decade ago, Orda spent $140 million renovating both properties.
