Global commercial real estate services firm Newmark has arranged a $535.8 million loan on behalf of GFP Real Estate, Metro Loft Management and Rockwood Capital for the acquisition and redevelopment of 25 Water Street. 25 Water Street is a 22-story, 1.1 million-square-foot office building in New York City’s historic Financial District. This transaction represents the largest ever office-to-residential conversion in the United States.
Upon redevelopment, the property will be refitted to feature approximately 1,300 residential units ranging from studios to four-bedrooms. The property’s 12’4″ slab-to-slab ceiling heights and expansive 40,330-square-foot floor plates provide an attractive canvas for residential conversion. The property will also provide residents with an unmatched amenity package relative to other rental buildings in lower Manhattan. Fitness amenities are expected to include a basketball court, a steam room/sauna, indoor and outdoor pools and sports simulators. Lifestyle amenities are expected to include an expansive sky lounge and landscaped outdoor rooftop terrace and multiple entertainment and coworking spaces.
The residential conversion of 25 Water Street will be executed by a world-class sponsorship team led by GFP in collaboration with Metro Loft Management. GFP has recently acquired and redeveloped 13 properties comprising $2.2 billion invested into 3.9 million square feet and recently completed a $550 million renovation of David Geffen Hall at Lincoln Center for the Performing Arts. Metro Loft Management has a market-leading track record of conversions in lower Manhattan, including over five million square feet over the past 20 years.
Built in 1969, 25 Water Street enjoys uninterrupted light and air on three sides, offering broad views of lower Manhattan and New York Harbor from all floors. The property is situated on a double-wide street corridor with the widest exposure fronting Water Street protected by the property’s own broad plaza, the low-rise Fraunces Tavern historic district and Coenties Slip park directly across Water Street. The property is also surrounded by two acres of broad plazas and public parks. Several modes of transportation, including over a dozen nearby subway lines, provide convenient access to the property.
According to Newmark, Lower Manhattan has transformed into a true 24/7 neighborhood. The 2020 census revealed a residential population that is 33% higher than in 2010 and a massive four-fold increase from 2000. It is now the fastest-growing neighborhood in Manhattan.