$170M Financing Secured for FiDi’s 20 Broad Street

JLL secured $170 million in financing for the conversion of 20 Broad Street, a 29-story office building that FiDi veteran Nathan Berman will transform into a residential and retail asset.

20 Broad Street, New York

New York—MetroLoft, the development firm controlled by Nathan Berman, a developer who specializes in converting old Lower Manhattan office buildings into residential space, is taking on another transformation project in Manhattan’s Financial District. The developer has secured $125 million in acquisition and pre-development financing and $45 million in preferred equity for 20 Broad Street, a 29-story office building that will be transformed into a mixed-use Class A multifamily and retail development.

JLL’s Capital Markets team led by Managing Director Max Herzog arranged the transaction and an investment bank and AllianceBernstein provided the financing. Vanbarton Group contributed the preferred equity.

“With Manhattan land and property prices on the rise, it’s challenging to identify residential rental projects that make economic sense,” said Herzog. “Metro Loft was able to secure one of the best located properties in the booming financial district to convert it into a profitable, class-A rental property. Given their experience converting large downtown office properties to multifamily properties, the lending market’s response to this financing opportunity was extremely positive.”

Berman acquired the leasehold for 20 Broad Street in October 2015 from Vornado Realty Trust, which reportedly considered converting the building itself, and the leasehold was valued at $200 million, according to The Real Deal. The REIT ground-leased the building from the New York Stock Exchange until 2081, and Vornado told The Real Deal that the two sides agreed to an early termination of the stock exchange’s lease. The NYSE is expected to vacate the building in August, according to New York Yimby.

Upon completion of the conversion, the property will include more than 500 multifamily units and up to five floors of retail space, with frontage on three streets. The site is also located near several restaurants, retail, culture and transit, producing a heavy amount of foot traffic.

Other office properties MetroLoft is involved in transforming into residential assets include Lower Manhattan’s 17 John St., 180 Water St. and 20 Exchange Place, The Real Deal reported. The developer is also working on its first condo project, a $350 million conversion of a historic former manufacturing building at 443 Greenwich St., which is slated for completed in mid-2016, Crain’s New York Business reported. Condo prices start at $7 million and go as high as $55 million for the largest of eight penthouses.

Image courtesy of New York Yimby