Newmark has arranged a $535.8 million mortgage on behalf of GFP Real Estate, Metro Loft Management and Rockwood Capital for the acquisition of 25 Water Street, a 1.1 million-square-foot New York office building that is slated for conversion into a residential property. MSD and Apollo funded the loan.
The sponsors are planning to redevelop to 22-story Financial District property into 1,300 residential units that will range from studios to four-bedroom apartments in a conversion that will be the largest of its kind ever completed in the US.
The financing was led by Dustin Stolly and Jordan Roeschlaub, vice-chairmen and co-heads of the debt and structured finance team, with Chris Kramer, senior managing director.
The planned conversion of the 1969-vintage building is part of GFP’s broader strategy to acquire and redevelop assets, with the New York-based manager recently acquiring and redeveloping 13 properties comprising $2.2 billion. This included the $550 million renovation of David Geffen Hall at Lincoln Center. Additionally, Metro Loft specializes in converting properties in lower Manhattan and has completed more than five million square feet of conversions over the past 20 years.