Another Day, Another Office to Multifamily Conversion in Lower Manhattan
- Jul 17, 2015
The 25-story black, glassy office structure towering at the corner of Water and John streets in the Financial District is closer to start a new chapter in its 44-year-old history—this time as apartments.
Capital One Bank Commercial Real Estate announced earlier this month that it awarded a $180 million senior loan towards the conversion of 180 Water Street into rental apartments, and Brookfield Asset Management chipped in with $60 million in mezzanine financing for the project. The CIT Group and Santander Bank were listed as participant lenders in the syndication. Steven Kohn, Alex Hernandez, and Alex Lapidus of Cushman & Wakefield served as the exclusive advisors to Vanbarton Group and Metro Loft Management, the joint venture behind the redevelopment project.
Built in 1971, the 580,000-square-foot tower is located about five blocks from the Brooklyn Bridge, in one of the most desirable locations on Lower Manhattan. The building is owned by Emmes Asset Management Co. and Metro Loft Management who purchased the asset back in 2013 for $151 million. Until recently, the building was fully leased to the New York City Human Resources Administration who relocated at 4 World Trade Center, a move that created an opportunity for redevelopment.
The owners filed plans to convert the office tower into rentals in January this year, as reported by New York YIMBY. Designed by Avinash K. Malhotra Architects, the redevelopment project calls for converting 447,000 square feet of space into rental units, while 10,000 square feet will be used as street-level retail space. When completed in early 2017, the revamped building will offer 565 Class-A, market-rate units, an outdoor rooftop pool, fitness center, rooftop lounge and terrace, all located on the top two floors of the building.
Image courtesy of Cushman & Wakefield