Arrow Real Estate Advisors Announces Acquisition of East 17th Street Offices for Luxury Residential Conversion

NEW YORK, NY, UNITED STATES, May 13, 2025 /EINPresswire.com/ -- Arrow Real Estate Advisors, a premier real estate finance advisory firm, announces the successful acquisition of 317 and 321 East 17th Street. The two properties were acquired from Mount Sinai Hospital and were used most recently as medical offices for the hospital. Located in the highly sought-after Gramercy neighborhood, the two properties will both be converted into residential housing. Morris Betesh, Founder and Managing Partner, Jack McPhail, Senior Vice President, and Alex Ellman, Senior Associate at Arrow Real Estate Advisors completed the financing.

Arrow Real Estate Advisors’ clients purchased both the 317 and 321 properties for $33.5 million with $30 million in total financing. The acquisition included the signing of a 99-year ground lease on the property to a non-affiliated third-party who will turn both properties into luxury multifamily housing. Once renovated the Class-A multifamily property will include 96 residential units, split into 74 free market units and 22 units of affordable housing. The properties are eligible to benefit from the 467-m tax abatement, a newly adopted incentive program promoting the redevelopment of commercial assets into residential housing. Once completed, the project is eligible to receive 35 Year abatement of taxes up to 90% of the fully assessed tax burden. The converted property will retain 8,300 square feet of commercial space. The prime location in Gramercy boasts a strong rental market where demand has remained robust due to the neighborhood's convenient distance to cultural landmarks, reputation for safety, and picturesque streets.

“This acquisition marks a significant milestone, showcasing our ability to navigate a complex and competitive market, while aligning with our client’s strategic business plan to maximize long-term value of the property through a smart, sustainable conversion,” said Morris Betesh, Founder and Managing Partner of Arrow Real Estate Advisors. “Our team's deep market expertise and ability to identify opportunities while mitigating risk underscores our commitment to providing clients with the maximum value.”

Arrow Real Estate Advisors’ team worked within a tight, 30-day closing timeframe with a hard time-of-execution date. They financed a $30 million mortgage, which was a high leverage loan-to-purchase price perspective. They worked with the lender to create an added value lease structure that captured the low loan-to-value ratio of the property. Arrow’s team worked with the client to create a strategic business plan to reduce risk and ensure the longevity of the assets value.

About Arrow Real Estate Advisors
Arrow Real Estate Advisors, founded in 2024 by industry veteran Morris Betesh, is a leading real estate finance advisory firm that partners with the nation's top developers. The firm delivers comprehensive, customized financial solutions, specializing in permanent financing, construction financing, debt structuring, and raising joint venture equity. Operating across all asset classes—including luxury residential, commercial office, hotels, retail, and industrial warehouses—Arrow Real Estate Advisors is dedicated to exceeding client expectations and achieving exceptional results. With a dynamic team of some of the most driven, innovative, and sharpest professionals in the industry, the firm consistently provides creative solutions and leverages its expansive network of financial partners. Headquartered in New York City, Arrow Real Estate Advisors operates nationwide, setting new standards in real estate finance. For more information about Arrow Real Estate Advisors and its services, please visit https://www.arrowrea.com.

Sarah Berman
The Berman Group, Inc.
+1 212-450-7300
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