Broad Street Development has fresh financing and newly added partners for its Financial District conversion project.
The firm recapitalized the development at 80 Broad Street for a grand total of approximately $300 million, the Commercial Observer reported. Derby Lane Partners provided $175 million in construction debt, while private equity firm PCCP and One Investment Management filled in the gaps of the broader recapitalization.
“This recapitalization marks a major milestone and the formal launch of a residential redevelopment that will transform a historic downtown office tower into a modern residential community,” BSD chief executive officer Raymond Chalmé said in a statement.
A Newmark team of Jordan Roeschlaub, Nick Scribani and Niv Shahmoon brought in the construction financing, while the firm’s Adam Spies and Adam Doneger led the broader recap.
BSD and Invesco filed plans for a 326-unit conversion of the office building at 80 Broad in January, plotting to transform the 423,000-square-foot office building into a condensed 336,000-square-foot residential-forward property.
The conversion will include a basement fitness studio, a restaurant and a doctor’s office on the first floor, as well as co-working space, bike storage and a pool on the seventh floor. The developers plan to tap the 467m office-to-residential tax incentive program, meaning at least 25 percent of the housing units will need to be rented at affordable rates.
BSD bought the building in 2014 for $175 million. In December 2017, ownership secured a $102 million mortgage on the property from AIG Investments.
That mortgage was issued about a month after Invesco purchased a 95 percent stake in the building from Broad Street for $235 million. Broad Street retained a 5 percent stake in the tower and continued to manage the property.
In 2021, PCCP issued a $150 million loan to refinance the building after a $9 million capital improvement project that included upgrades to the hallways, restrooms and lobby.
The developers still need to relocate office tenants, including cannabis startup LeafLink, co-working company Regus and Broad Street itself, which has its headquarters there.
— Holden Walter-Warner
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