Permits & development · 10/14/2026
Sapir gets $105M loan for 261 Madison Ave, drops residential conversion
The Sapir Organization secured a $105 million refinancing from Genesis Credit for its 28-story office building at 261 Madison Avenue. The deal ends talk of converting the building to housing. CEO Alex Sapir said the firm will keep it as offices and invest in upgrades to raise rents. The firm sold 260 Madison Avenue last year for $217 million.
Reported by The Real Deal · New YorkRead the original ↗
What happened
The Sapir Organization secured a $105 million refinancing for its 28-story office building at 261 Madison Avenue, near Grand Central. The Real Deal reported the deal on October 14, 2026. The lender is Genesis Credit, according to the company. The financing includes both senior and mezzanine debt. Newmark's Anthony Orso and Ari Schwartzbard brokered the deal.
The deal ends talk of converting the 1950s-era building to residential use. CEO Alex Sapir said he decided to keep it as an office property. He plans to invest in the interior and exterior to attract new tenants and raise rents. "We're going to reposition the asset to be one of the leaders in the neighborhood for rents," he told The Real Deal.
Alex Sapir's late father, Tamir, bought 260 and 261 Madison Avenue in 1997. In 2020, Alex Sapir sued his former brother-in-law, Rotem Rosen. He accused Rosen of using his brother, former Sapir Organization general counsel Omer Rosen, to issue himself a $580,000 personal loan from 260-261 Madison Avenue. The two sides settled in 2022. Last year, Sapir sold 260 Madison Avenue to Jonathan Bennett's AmTrustRE for $217 million.
The firm's U.S. portfolio has shrunk in recent years. Sapir Corp sold its NoMo Soho hotel out of bankruptcy in October 2025. Months earlier, Sapir Corp and its partners re-listed a 1.5-acre assemblage in Miami's Edgewater neighborhood for sale.
Key facts
- Address
- 261 Madison Avenue, Manhattan, near Grand Central
- Building
- 28-story office building from the 1950s era
- Loan amount
- $105 million refinancing, senior and mezzanine debt
- Lender
- Genesis Credit
- Owner
- Sapir Organization, CEO Alex Sapir
- Brokers
- Anthony Orso and Ari Schwartzbard of Newmark
- Residential conversion
- Dropped; building will stay offices
- Reported
- The Real Deal, October 14, 2026
What it means
Tenants and voucher holders
This deal does not create any apartments. Talk of converting the building to housing has ended, so there are no units or lotteries to watch for here.
Buyers and owners
This is an example of an owner choosing to refinance and renovate an older office building instead of converting it. The financing mixes senior and mezzanine debt.
Landlords
There is no direct effect on small residential landlords. The story is mainly about Midtown office financing.
The highlights
- Genesis Credit provided the senior and mezzanine debt.
- The 28-story, 1950s-era office tower sits near Grand Central.
- Sapir plans interior and exterior upgrades to attract tenants and raise rents.
Why it matters Landlords
One fewer Midtown office building is headed for residential conversion, so it will not add new apartments to the city's supply.
Not known yet
- The interest rate, term and split between senior and mezzanine debt
- How much the renovation will cost and when work will start
- How many apartments a conversion might have produced
- The building's current office occupancy and rents
Background
Mezzanine debt is a loan that sits behind the main senior mortgage and is usually backed by ownership interests in the property rather than the building itself. It typically carries higher interest because it is repaid after the senior loan. In New York City, turning an office building into apartments generally requires new plans filed with the Department of Buildings and must meet residential zoning and building code rules, so owners weigh that cost against keeping and upgrading the offices.
Summary written by Bulwark from The Real Deal · New York’s reporting. The original story is at therealdeal.com. This is general information, not legal advice.
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