Nathan Berman nabs $270M loan for 20 Broad conversion

Bank of Ozarks to pony up $187M construction loan for 521-unit rental

20 Broad Street, a rendering of the conversion (Credit: CetraRuddy) and Nathan Berman
20 Broad Street, a rendering of the conversion (Credit: CetraRuddy) and Nathan Berman

UPDATED, Jan. 5, 3:30 p.m.: Nathan Berman’s Metro Loft Management nabbed $270 million in financing for a planned office-to-resi conversion of the former New York Stock Exchange building at 20 Broad Street.

Bank of the Ozarks — which has become one of the most active lenders in New York City real estate in recent years — committed to a $187 million mortgage loan, according to loan documents. The funding also includes $83 million in mezzanine debt from a Brookfield Property Group-sponsored real estate fund. JLL’s Max Herzog arrange the loan for Berman.

Metro Loft paid $185 million to acquire the leasehold for the property last year from Vornado Realty Trust [TRDataCustom], which operated the building as an office serving the NYSE. The ground lease is in effect until 2081, when the NYSE has the right to take back the building.

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In April, Berman’s Financial District-based development firm filed plans to convert 20 Broad into 521 luxury rental apartments, with an additional 90,000 square feet of retail space spread over fives levels.  Permit filings show Metro Loft envisioned an additional six stories to be built atop the 443,260-square-foot, 27-story building.

At that time, Berman told The Real Deal that he planned to spend $100 million to gut renovate the building. He said apartment prices would start at $2,600 a month for studios, with one-bedrooms starting at $6,500 a month.

Berman has converted several other office buildings in the neighborhood into apartments, including 180 Water Street, 17 John Street and 20 Exchange Place. Metro Loft is also behind the conversion of 443 Greenwich Street in Tribeca, a 53-unit condominium that has a penthouse listed for $55 million.

Berman did not immediately return a call seeking comment.