KPG Funds has secured a $50 million construction loan from Sabal Investment Holdings and GDS Brightstar for the redevelopment of 40 Crosby, a 70,000-square-foot office building in SoHo.  

The project will transform the building into a boutique luxury office space called The Crosby, featuring retail space with Broadway frontage. The three-year loan will fund a full renovation, including a separate entrance on Crosby Street and high-end pre-built office space. The property will offer infrastructure, wellness amenities, and technology features. The retail space, spanning 18,000 square feet, will cater to big-box tenants.  

“The demand for office space post-covid is being redefined in 2023 by landlords who provide an ultra-high-end experience for their tenants in highly desirable locations,” said KPG co-founder and CEO Greg Kraut.   

The refinancing was arranged by Newmark.