GFP, MetroLoft seek to convert 25 Water Street to 1,200 rentals
Could be largest office-to-resi project in New York City
Jeff Gural’s GFP Real Estate, Nathan Berman’s Metroloft and Rockwood Capital are planning to convert 25 Water Street into about 1,200 rental apartments, possibly making it the largest office-resi conversion by unit count in New York City.
The group is close to obtaining a $500 million construction loan from Michael Dell’s MSD Capital for the conversion, sources familiar with the deal told The Real Deal.
Gural and MetroLoft went into contract to buy the office building last year. It is set to close by year end, according to sources.
GFP, Metroloft and Rockwood plan to acquire the property, formerly known as 4 New York Plaza, by taking on a $250 million loan from the property’s lender DekaBank at par value. The current owner, Edge Funds, will hand over the keys to the GFP-led group through a deed in lieu of foreclosure, sources say.
The transactions are expected to close by year end.
A Newmark team led by Dusty Stolly and Jordan Roeschlaub negotiated the loan sale and the construction loan. Newmark declined to comment.
The 22-story, 1.1 million-square-foot property has long served as back offices for JPMorgan. The bank has been seeking to sublease a substantial portion of its 700,000 square feet, however, as it prepares to consolidate employees in its in-development headquarters at 270 Park Avenue.
Edge Companies and HSBC Alternative Investments acquired the Water Street building from Harbor Group International for $270 million in 2012.
Harbor Group had acquired the building from JPMorgan in 2010 for $107 million.
In late 2020, the property hit the market with CBRE’s Darcy Stacom and Bill Shanahan handling the marketing.
Metroloft is one of the most active office-to-residential converters. It is looking to close on 30-story 55 Broad Street in the Financial District so it can begin the property’s long-planned conversion. It is partnering with Silverstein in the deal.
The largest office-to-residential conversion so far has been Harry Macklowe’s 1.2 million-square-foot One Wall Street, which debuted this year. The building has 566 condos.
GFP, Metroloft and Rockwood did not return requests for comment.
Rich Bockmann contributed reporting.