Yellowstone Real Estate signs $326M loan for 312-unit conversion in Hell’s Kitchen

UPDATED 12:50 p.m., January 14, 2026: Yellowstone Real Estate Investments through the entity Ys 440w57 Owner LLC as borrower signed a renovation construction loan with lender Barings through the entity Barings LLC valued at $326 million for conversion of the hotel building (H2) into a residential building with 312 apartments at 440 West 57th Street in Hell’s Kitchen, Manhattan.

On the lot, there is one active major alteration construction project, M00825038, for a 312-unit, 306,673 square-foot residential (J-2) building. The project was submitted by Tomer Posner with plans filed March 20, 2023 and permitted December 5, 2025.
The deal closed on December 22, 2025 and was recorded on January 12, 2026. The prior lender was Universal Investment which held debt that had an original loan amount of $90 million.The property has 441,347 square feet of built space according to a PincusCo analysis of city data. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on March 31, 2021, for $154.9 million. The signatory for Yellowstone Real Estate Investments was Issac Hera . The signatory for Barings was Kelly Yates .

Prior sales, articles and revenue

The owners according to the Department of Housing Preservation and Development includes Tomer Posner, head officer and Joseph Esposito, site manager. The business entity is Ys 440w57 Owner Llc. The 441,347-square-foot property generated revenue of $41.3 million or $94 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Hell’s Kitchen has 441,347 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 175 feet and is 200 feet deep with a total lot size of 37,650 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $72.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received three DOB violations, $8,125 in ECB penalties, and $9,165 in OATH penalties in the last year.

The neighborhood

In Hell’s Kitchen, The bulk, or 39 percent of the 40.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Hell’s Kitchen has 3.7 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Hell’s Kitchen has 1.9 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Manhattan. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 15 of the 25 commercial properties representing 823,308 square feet of the 894,827 square feet. The largest owner is Yellowstone Real Estate Investments, followed by Harry Sohn and then Ellen Hakim.
There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 894,827 square feet of built space are hotel buildings, with elevator buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Yellowstone Real Estate Investments owned at least four commercial properties in New York City with 1,513,743 square feet and a city-determined market value of $527.9 million. (Market value is typically about 50% of actual value.) The portfolio has $353 million in debt, with top three lenders as Bank Hapoalim, BVK, and Fortress Investment Group respectively. Within the portfolio, the bulk, or 50 percent of the 1,513,743 square feet of built space are hotel properties, with office properties next occupying 50 percent of the space. They are all located in Manhattan.

CORRECTION: A prior version of this post reported an incorrect loan amount.

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