Sales  ·  office

TPG Buys Two Manhattan Office Buildings for Residential Conversion


TPG and its partners are investing in two New York City buildings in the hope of converting them from office to residential, Commercial Observer has learned.

Formerly known as Texas Pacific Group, the private equity firm has closed on the deal to buy 222 Broadway for $150 million, according to a source with knowledge of the deal. TPG also is in contract for 101 Franklin Street in a joint venture with Skylight Real Estate Partners and Cannon Hill Capital Partners for more than $100 million, the source said. Jeff Gural’s GFP Real Estate is TPG’s joint venture partner in the 222 Broadway acquisition, which has officially closed, the source said.

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DWS, the asset management arm of Deutsche Bank (DB), is selling 222 Broadway, while Columbia Property Trust is offloading the Franklin Street building, according to property records. 

DWS, Columbia, TPG, Skyline, Cannon Hill and GFP did not immediately respond to requests for comment.

Newmark (NMRK)’s co-head of U.S. capital markets Adam Spies was marketing the property alongside Adam Doneger, Douglas Harmon, Marcella Fasulo and Josh King. Spies declined to comment.

While there have been doubts about whether office-to-residential conversions are worth the investment, there may be reason to believe in Tribeca’s potential. Condominiums just across the street from 101 Franklin sell for about $3,000 to $4,000 per square foot at 56 Leonard Street.

Units there range between 1,000 and 2,200 square feet and are on the market for anywhere between $2.9 million and $4.8 million, respectively, according to listings on StreetEasy.

Office-to-residential conversions have been on the rise with Gural recently reclaiming the Flatiron Building for that purpose after the relationship with his business partner, Nathan Silverstein, soured and an attempt by Silverstein’s distant cousin Jacob Garlick to derail a partition auction for the building in March and May 2023.

Gural partnered with the Brodsky Organization to transform the New York City landmark into apartments and is currently in the market for $350 million in financing for the work, the source said.

Mark Hallum can be reached at