NEW YORK CITY — Newmark has arranged a $535.8 million loan for the acquisition and redevelopment of 25 Water Street, a 1.1 million-square-foot office building in Lower Manhattan, New York City’s historic Financial District. Dustin Stolly, Jordan Roeschlaub and Chris Kramer of Newmark arranged the loan through MSD and Apollo. The seller was not disclosed, but multiple media outlets have reported that Edge Funds sold the asset.
The borrowers, GFP Real Estate, Metro Loft Management and Rockwood Capital, will use the funds to convert the 22-story office building into a residential tower housing 1,300 apartments ranging in size from studios to four-bedroom units. The project represents the largest ever office-to-residential conversion in U.S. history, according to Newmark.
The office building, formerly known as 4 New York Plaza, was once anchored by JPMorgan Chase & Co. The financial giant recently unveiled plans for its newly revamped headquarters at 270 Park Ave. in Manhattan.
Built in 1969, 25 Water Street features 12-foot, 4-inch slab-to-slab ceiling heights and 40,330-square-foot floor plates, which will give future residents direct views of the Lower Manhattan skyline and the New York Harbor from all floors. The property is situated on a double-wide street corridor with the widest exposure fronting Water Street, according to Newmark.
Nearby is the Fraunces Tavern historic district and the Coenties Slip park is directly across Water Street from the property. The tower is also surrounded by two acres of broad plazas and public parks, as well as several modes of transportation, including over a dozen nearby subway lines.
In addition to the retrofitted residences, the property will feature a unique amenity package, including a basketball court, steam room/sauna, indoor and outdoor pools and sports simulators. Lifestyle amenities are expected to include a sky lounge, landscaped outdoor rooftop terrace and multiple entertainment and coworking spaces.
The borrowers are no stranger to adaptive reuse developments. GFP has recently acquired and redeveloped 13 properties comprising $2.2 billion in total investment. The firm recently completed a $550 million renovation of David Geffen Hall at Lincoln Center for the Performing Arts in New York City. Additionally, Metro Loft Management has a strong track record of conversions in Lower Manhattan, including over 5 million square feet over the past 20 years, according to Newmark.
According to 2020 Census data, Lower Manhattan’s residential population has quadrupled since 2000. Due to its walkability, access to jobs, the waterfront and amenities, the neighborhood is the fastest-growing in Manhattan.
— John Nelson