New York & Tri-State + Downtown New York + Finance | December 22, 2022

Newmark arranged a $535.8-million loan for the acquisition and redevelopment of 25 Water St., an office building in Lower Manhattan

25 Water St. Acquisition is Largest Office-to-Residential Conversion Deal on Record

Newmark arranged a $535.8-million loan on behalf of GFP Real Estate, Metro Loft Management and Rockwood Capital for the acquisition and redevelopment of 25 Water St., a 22-story, 1.1-million-square-foot office building in Manhattan’s Financial District, into a multifamily property. The transaction represents the largest ever office-to-residential conversion in the U.S., based on Real Capital Analytics data.

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.

Upon redevelopment, the circa-1969 25 Water St. will be refitted to feature approximately 1,300 residential units. GFP and Metro Loft bring a formidable track record to the project, with GFP having recently acquired and redeveloped 13 properties comprising $2.2 billion invested and Metro Loft having executed five million square feet of conversions in Lower Manhattan over the past 20 years.

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Inside The Story

Newmark's StollyNewmark's Roeschlaub

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).