BHI Provides $167 Million Construction Loan to Yellowstone to Convert 221 West 41st Street Into a 176 Unit Multifamily Building

NEW YORK, March 31, 2026 – BHI, the U.S Branch of Bank Hapoalim, B.M. and a full-service commercial bank, today announced that it has provided Yellowstone with $167 million to convert the Candler Building, a 25-story 221,357 SF office building into a 176-unit multifamily building along with a 18,174 SF retail component.  Naftali Credit Partners will provide an additional $36 million in mezzanine financing, bringing the total loan amount to $203 million.

The apartments will range from studio to 2-bedroom unit layouts, most of which will have one or two home offices.  Overall, it is expected that 44 apartments will be set aside for households in compliance with the 467-M Affordable Housing conversion program. 

Formed as a joint venture between major international institutional investors, Yellowstone pursues real estate investment opportunities where its development, management, and operations expertise enable value creation. The management team is in the process developing, several assets  across the portfolio including 440 West 57th Street and 1740 Broadway and 541 Lexington Avenue.

The company is helmed by CEO Issac Hera, who oversees the firm’s overall business, operations, and investment strategy. Prior to Yellowstone, Mr. Hera was CEO of Star Real Estate Ventures, an income-producing residential real estate company as well as the CEO of Brack Capital Real Estate USA, the American subsidiary of the publicly traded international real estate development firm Brack Capital.

BHI has served as a financial partner for Yellowstone on several occasions, most recently through collaborating on real estate deals and the issuing of a capital call line to enable the developer to make opportunistic acquisitions immediately before needing to make corresponding capital calls from their existing LPs.

“BHI has long been an active partner to Manhattan’s development community, working alongside sponsors to unlock value and support the continued evolution of the city’s real estate landscape,” said Ilana Druyan, Senior Vice President - Team Leader and Head of International Origination – CRE, at BHI. “Our bank is continually active in the wide city trend of office to residential conversions as a mechanism to create more living spaces for NYC residents and we’re pleased to support Yellowstone with this capital to advance their vision for repositioning this asset and bringing it back to market with renewed purpose.”

“Having a partner like BHI who understands both the speed and complexity required to execute on opportunities in Manhattan is incredibly valuable,” said Isaac Hera, CEO, Yellowstone Real Estate Investments. “Their ability to align with our business plan and deliver capital with certainty allows us to move decisively as we reposition assets and pursue opportunities across the market. We’re excited to continue building on this relationship.”

BHI, the U.S Branch of Bank Hapoalim, B.M., Israel's leading financial institution, provides commercial banking solutions to middle market clients in sectors including commercial real estate; general, domestic and Israeli C&I; private equity and specialty finance; renewable energy; healthcare; corporate banking; and technology and data centers.  In addition to its New York headquarters, the bank operates U.S. Representative Offices in Woodcliff Lake, New Jersey; Miami, Florida; and Los Angeles, California. For more information, visit www.bhiusa.com