The latest Financial District office-to-residential conversion has the money in place to get the project going.
Jeff Gural’s GFP Real Estate and TPG Real Estate scored a $288 million construction loan for its project at 222 Broadway in Lower Manhattan, the Commercial Observer reported. BDT & MSD Partners supplied the debt for the redevelopment.
Newmark’s Jordan Roeschlaub and Chris Kramer arranged the loan. None of the parties involved in the deal immediately commented to the Observer.
Over the summer, GFP and TPG submitted an alteration application for the site. The joint venture partners plan to transform the 770,000-square-foot property into a 31-story, 798-unit residential property.
The partners were eyeing a conversion when they purchased the property in June from DWS for $150 million.
Office-to-residential conversions are all the rage in the Financial District, where aging properties are being emptied out by companies’ waning needs for space anad tenants’ desire to move towards the highest-quality spaces.
In the fall, Newmark filed permits on behalf of 2 Wall Street owner Fieldston Capital — associated with Hong Kong-based firm Aegis Asset Management — to turn the eighth through top floors of the 21-story tower building between Broadway and Nassau Street into 121 apartments.
In late September, Manhattan-based developer Bushburg filed plans to redevelop part of 80 Pine Street to 500 residences. A similar project is in the works at 55 Broad Street.
Gural himself is involved in another major conversion in the Financial District.
GFP is working with Nathan Berman’s Metro Loft and Rockwood Capital on a 1,300-unit conversion of 25 Water Street. At the end of 2022, the partners closed on a $536 million loan from Michael Dell’s MSD Partners and Apollo Commercial Real Estate Finance; the financing represented the largest for an office-to-residential conversion in the country’s history, according to Real Capital Analytics data shared by Newmark.
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