Newmark arranges $535.8 million acquisition and redevelopment financing of 25 Water St.

Manhattan, NY Newmark has arranged a $535.8 million loan on behalf of GFP Real Estate (GFP), Metro Loft Management and Rockwood Capital for the acquisition and redevelopment of 25 Water St. The 22-story, 1.1 million s/f office building is located in the  Financial District. The Newmark team was led by vice-chairmen and co-heads of the debt & structured finance team Dustin Stolly and Jordan Roeschlaub and senior managing director Chris Kramer. MSD and Apollo provided the loan. 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 s/f floor plates provide a 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 St. 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 s/f 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 s/f over the past 20 years.

Built in 1969, 25 Water St. has 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 St. protected by the property’s own broad plaza, the low-rise Fraunces Tavern historic district and Coenties Slip park directly across Water St. 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.