GFP Real Estate, Metro Loft and Rockwood Capital started the year by launching leasing at 25 Water Street. They’re ending it with a nine-figure financing package for the historic office-to-residential conversion.
Apollo and GIC provided an $835 million debt package to refinance the 1,320-unit building in the Financial District, the Commercial Observer reported. Leasing began at the former 1.1 million-square-foot office property — dubbed SoMA for South Manhattan — in the last days of January and move-ins began the following month.
A Newmark team including Jordan Roeschlaub, Chris Kramer and John Caraviello negotiated the debt.
The last major financing at the property came three years ago, when Michael Dell’s MSD Partners and Apollo Commercial Real Estate Finance provided a $536 million loan for the acquisition and redevelopment of the building.
At the time, the loan was the largest for an office-to-residential conversion in United States history, according to Real Capital Analytics data shared by Newmark.
Before the conversion, the 22-story property long served as back offices for JPMorgan. The bank, however, pursued a sublease for a substantial portion of its 700,000 square feet as it prepared to move to its new headquarters at 270 Park Avenue.
The developers proceeded to embark on one of the largest office-to-residential conversions in the country’s history. In addition to the high unit count, the building also features 100,000 square feet of community amenities, including both rooftop and indoor pools, a spa, a bowling alley, a game room with sports simulators and coworking space.
The developers are also seeking a tax abatement under the 467m conversion program since a portion of the units were set aside for affordable housing.
There are a handful of units available on the property’s website, ranging from net effective rents of $3,500 to more than $10,000; layouts range from studios to four-bedroom apartments.
— Holden Walter-Warner
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GFP, Metro Loft close on $536M loan at 25 Water Street
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