Silverstein and Metro Loft Close on 55 Broad Street

Silverstein Properties and Metro Loft Management finally closed on their acquisition of 55 Broad Street from the Rudin family as the developers embark on one of the largest office-to-residential conversions in New York City history.

Silverstein and Metro Loft initially went into contract over a year ago for $180 million, but the sale was delayed as interest rates rose and forced lenders and borrowers to rewrite deals. It closed for $172.5 million, about a 4 percent discount from the initial contract price.

Eastdil’s Gary Phillips brokered the transaction. He also arranged financing with JLL’s Christopher Peck.

The developers eventually landed $220 million in financing from Mexico-based Banco Inbursa, according to a release.

Silverstein and Metro Loft are planning to convert the 30-story, 410,000-square-foot building into 571 market-rate apartments. Ares Real Estate will also have a stake and Rudin will retain a stake as well.

The Downtown Manhattan office building opened in 1967 and served as the headquarters for Goldman Sachs until 1983. Like many dated office buildings, it has struggled to retain tenants lately and is only about 60 percent occupied.

CetraRuddy Architecture has been tapped for the conversion.

“We took advantage of 55 Broad’s unique form with setbacks which enabled us to design a variety of apartment sizes and types ranging from efficient units to loft-like layouts with generous terraces,” said John Cetra of CetraRuddy in a press release.

Cetra said they were able to recapture floor area to add additional square footage at the top of the building.

Not everyone is a fan of the project. One office tenant, Allen London’s Solstice Residential Group, filed a lawsuit to stop 55 Broad’s conversion, claiming it would be a violation of the firm’s lease and “extremely disruptive and dangerous” to the company. The developers filed a motion to dismiss. The lawsuit is still pending.

Metro Loft and Silverstein plan to start construction next month and finish in about two years.