Office-to-residential conversion deals — is anyone financing these?

Thomas, this is a very niche deal type and most bridge lenders won't touch it. The ones who will typically require: 1. Experienced developer (multiple completed conversions or similar projects) 2. Pre-approved entitlements/zoning for residential use 3. Detailed construction budget from a licensed GC 4. Pre-sales or pre-leases on a portion of the units 5. Significant equity (30%+ of total project cost) At Novak Capital, we've done 2 of these in the past 3 years. Both were in markets with strong housing demand and the developers had 10+ years of experience. DM me if your client fits that profile.

Office-to-resi is getting a lot of attention but the execution challenges are significant. The buildings often have floor plates that don't work well for residential, HVAC/plumbing is in the wrong places, and the entitlement process can take years. Make sure your developer client has done their homework on the physical feasibility before spending time on financing.

I've seen 3 of these deals in my market. 1 succeeded, 2 are still stuck in entitlements 2 years later. The concept is great, the execution is brutal.