Metro Loft and GFP Real Estate have landed $835 million in financing for their residential site in Lower Manhattan that consists of 1,320 apartments.
The deal, carrying a term of three years, serves as refinancing for the building at 25 Water Street in the Financial District that recently delivered, as reported by the Commercial Observer. GIC and Apollo provided the debt package, with Newmark brokering it.
The property, which was recently delivered and hit the market earlier this year, served as one of the largest office-to-residential conversions in the country. Known as SoMA, the building, along with the units, contains a 100,000 square feet amenity package, which consists of a bowling alley, pools, coworking spaces and sports simulators. Some of the apartments were reserved for those earning between $80,000 and $100,000 per year.
Before the conversion, the site was formerly known as 4 New York Plaza, a 1.1 million square foot office space. Both Metro and GFP used a $535.8 million loan, which was supplied by both Apollo and MSD Partners, to buy and transform the property.
In addition, Metro is involved with another notable office-to-residential project currently — a site at 219 and 235 East 42nd Street. The redevelopment, which calls for 1,602 luxury apartments, secured a $720 million loan in May, marking the largest ever supplied for an office-to-residential transformation in New York City's history. Metro is working with David Werner Real Estate Investments on the site, which previously served as Pfizer's headquarters.
Overall, the appetite for office-to-residential conversions has never been higher in Manhattan, as the city deals with a housing shortage. In the year-to-date through August, 4.1 million square feet of projects across 15 sites began breaking the ground — marking the highest levels seen since 2008, according to a report from Cushman & Wakefield. Since 2020, the Midtown submarket has led the way, with 55 percent of such redevelopments underway, followed by Downtown at around 36 percent.