$535.8M Loan Issued for Largest Residential Conversion in US History

Following their $250 million November purchase of 25 Water Street (formerly 4 New York Plaza) in Manhattan's Financial District, GFP Real Estate, Metroloft Management, and Rockwood Capital have just obtained a $535.8 million loan from MSD Partners and Apollo Global Management. Arranged by Newmark Group, this capital will not only cover the acquisition costs but will also provide funding to completely convert the 22-story, Class-A office building, into a massive residential development.

Originally constructed in 1969, the 321-foot tall, 1,096,193-square-foot building was designed by Carson Lundin & Shaw. It currently contains 989,155 square feet of office space, offered in a variety of configurations. It has flexible floor plans and 40,330 square-foot floorplates that allow for up to 330 desks per floor. These expansive floor plates are one of the main reasons the structure was chosen for a residential conversion.

A couple of other decision drivers that will save time and resources for the team are a small amount of retail space (605 square feet), already located in the lobby, and an enclosed parking garage, with enough room for 43 vehicles.

The converted building will feature approximately 1,300 residential units. These will be offered in configurations ranging from studios to four bedrooms. Tenant amenities are to include a fitness center with a basketball court, a steam room and sauna, indoor and outdoor pools, and sports simulators. The building will also feature a sky lounge, a landscaped roof terrace, and multiple entertainment and coworking spaces.

Details are rather slim at this time, but based on the rendering created by CetraRuddy, it appears the building will receive a major facade upgrade with many new windows, and perhaps even a vertical expansion with larger units, featuring balconies. Whatever the case may be, the upcoming project represents the largest commercial-to-residential property conversion in United States history. Job timelines haven't been announced just yet, but regardless, this dull and rather outdated-looking office building can look forward to a bright and relevant future.

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