Waterbridge Capital and Continental Equities are on the hunt for a massive loan to fund the redevelopment of the century-old Museum Building at 801 South Broadway in Downtown.
The joint venture is seeking $500 million in floating-rate financing. It will refinance a $165 million predevelopment loan with Jamestown, and fund construction, improvements, and leasing, the Commercial Observer reported.
Waterbridge, led Joel Schreiber, and Continental acquired the property in 2014 for $130 million, according to published reports at the time. For the last two years, the owners have been preparing to convert the 1.1-million-square-foot landmarked building from a former department store into a mixed-use building. That process included getting approvals from the city to alter the landmarked building.
The converted five-story property would have around 470,000 square feet of office space, almost 300,000 square feet of retail, and a 117,000-square-foot hotel. The building was formerly known as the Broadway Trade Center and was built in the early 1900s. The open floor plans are expected to attract startups and other technology tenants who want to join the growing tech scene Downtown.
If the conversion is completed later this year as is scheduled, it would add a significant chunk of office space to the already high supply in Downtown. Last year closed out with a 20.6 percent vacancy rate in the neighborhood, with an additional 1.7 million square feet on its way, according to a recent report. [Commercial Observer] — Dennis Lynch