Banco Inbursa originates $220m financing for Silverstein, MetroLoft office conversion

The 30-story office tower at 55 Broad Street will be redeveloped into a 571-unit luxury apartment building.

Banco Inbursa this week funded a $220 million financing package for Silverstein Properties and MetroLoft Developers to convert New York’s 55 Broad Street office tower into a luxury multifamily asset.

Real Estate Capital USA exclusively confirmed the scope of the July 31 financing following the deal’s announcement. Funding from the Mexico City-based bank and equity partners will be used to transform the 30-story Financial District office property into a 571-unit multifamily tower.

The source of and plans for the financing reflect two ongoing trends in commercial real estate: international investment in US assets and office conversions. MetroLoft and Silverstein’s tower conversion is only a quarter mile away from 25 Water Street, which drew attention earlier this year when MetroLoft, GFP Real Estate and Rockwood Capital lined up $536 million in financing for a similar office-to-residential conversion.

Chicago-based advisory JLL worked on behalf of the borrower to secure the four-year, floating-rate loan through Banco Inbursa. JLL also advised on the procuring and structuring of the equity, the firm said.

The phased conversion will create studios, one-, two- and three-bedroom units across the tower as well as about 17,000 square feet of amenity space, including a rooftop pool. Upon conversion, the asset will be one of Manhattan’s few fully electric residential buildings and will be Local Law 97 compliant.

“Post-pandemic demand has shifted the dynamics of the office market, and the conversion of 55 Broad St to a best-in-class residential property reflects this trend,” said Christopher Peck, senior managing director and a lead member on JLL’s capital markets advisory team.

Asset conversion is a familiar play for MetroLoft. Just in the Financial District, the New York-based developer has completed 16 conversions spanning 3 million square feet and 3,000 units including its joint efforts on 25 Water Street.

Banco Inbursa and Silverstein have also previously worked together to finance commercial real estate developments.

In May, Banco Inbursa and New York-based manager Pearlmark originated $223 million in construction financing for a borrowing cohort featuring Silverstein to fund the first phase of creation for the South Pier at Tempe Town Lake in Arizona. In February, Banco Inbursa originated $165 million in construction financing for Silverstein’s 13-story mixed-use multifamily tower in the Queens neighborhood of Astoria.