GFP has another FiDi office-to-resi conversion in the works.
Jeffrey Gural’s firm has filed a permit application to convert the 240,000-square-foot office building at 40 Exchange Place to mixed-use. The project would carve out 382 residential units and retail in the 20-story building, according to the filing. GFP declined to comment.
The 19th-century building is currently used as offices and it’s unclear when it will be vacant. In 2023, several tenants signed short-term renewals, the Commercial Observer reported. The same year, A360 Media inked a four-year lease for 15,000 square feet.
GFP and Northwind Group teamed up in 2015 to buy the building for $115 million, then renovated it to the tune of $20 million. Northwind sold its stake to GFP in 2018, but did not abandon the property altogether. Last year, Northwind provided a $50 million first mortgage to GFP secured by the building, the Commercial Observer reported.
Neither GFP nor Northwind revealed plans for a residential conversion at the time. But GFP has plenty of experience transforming old office buildings into apartments. The developer teamed up with Metro Loft and Rockwood Capital on the conversion of 25 Water Street to 1,320 apartments, the largest conversion in the country to date.
In January, GFP and its partner TPG Real Estate scored a $288 million construction loan for an office-to-resi conversion project at 222 Broadway.
Office-to-residential conversions are all the rage in the Financial District, where aging properties are being emptied out due to companies’ declining needs for space and tenants’ desire to move towards the highest-quality spaces. Developers are also taking advantage of the city’s 467m program, which provides a 35-year tax abatement in exchange for 25 percent of apartments being earmarked for affordable housing.
The corner building at 40 Exchange Place, built in 1896 in the neo-Renaissance style, served as the Headquarters for the New York Stock Exchange from 1856 to 1865.
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