Banco Inbursa Supplies $220M Loan for Manhattan Office-to-Resi Conversion
By Andrew Coen August 1, 2023 4:41 pm
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Silverstein Properties and Metro Loft Developers obtained $220 million of financing to execute an office-to-residential conversion of 55 Broad Street in Manhattan’s Financial District, Commercial Observer has learned.
Banco Inbursa supplied the four-year, floating-rate loan on the sponsorship’s $172.5 million purchase of the office tower from Rudin Management, according to JLL, which brokered the debt transaction.
The Rudin family and funds managed by Ares Real Estate also provided equity in the deal, according to an announcement from Silverstein. Eastdil Secured’s Gary Phillips negotiated Ares’ portion, which one source said was between $80 and $90 million.
JLL’s capital markets advisory team that procured the loan was led by Christopher Peck, Eliott Zeitoune and Alex Staikos.
Once completed, 55 Broad Street will feature studios, one-, two- and three-bedroom units. Its amenities will include three rooftop pools, co-working facilities, fitness center and sport simulators. The property will also be one of the first fully electric residential buildings in Manhattan and compliant under Local Law 97 after mechanical renovations bring it to 100 percent carbon neutral, according to JLL.
“Post-pandemic demand has shifted the dynamics of the office market and the conversion of 55 Broad Street to a best-in-class residential property reflects this trend,” Peck said in a statement.
Peck added that MetroLoft has already completed 16 office to residential conversions in the Financial District from 16 projects spanning more than 3 million square feet and 3,000 units.
Officials at Banco Inbursa, Silverstein and Metro Loft did not immediately return requests for comment. Ares declined to comment.
Andrew Coen can be reached at acoen@commercialobserver.com
