Rockpoint JV Lands $275M Refi for NYC Community
Previous funding included a Fannie Mae loan originated by Wells Fargo Bank.
A joint venture between Rockpoint and Brooksville Co. has obtained $275 million for the refinancing of 63-67 Wall Street, a two-tower, 816-unit multifamily property in Manhattan. Apollo Global Management provided the financing, in a deal arranged by Newmark.
The ownership acquired the two high-rises in October 2016 for $421.5 million from DTH Capital, according to Yardi Matrix information. Previous financing included a $280 million Fannie Mae loan originated by Wells Fargo Bank, the same source shows.
The towers, initially constructed as two separate office buildings, were converted to residential in the 2000s. After purchasing the assets, the current ownership invested in apartment renovations, fully upgraded common areas and amenity space, as well as a reconfigured retail space.
READ ALSO: The Rise of Office-to-Residential Conversions in NYC
Located in Manhattan’s Financial District, the community is less than 2 miles from One World Trade Center. JFK International Airport is within 17 miles southeast.
Two redeveloped buildings
Built in 1921 as the headquarters for the Munson Shipping Co., the 25-story building at 67 Wall St. was converted into apartments in 2006. The community consists of studio and one- to three-bedroom floorplans ranging between 355 and 1,204 square feet, as well as more than 10,200 square feet of retail and 22,500 square feet of office space.
The 37-story high-rise at 63 Wall St. features studios and one- to three-bedroom layouts varying in size from 355 to 2,500 square feet, along with 9,500 square feet of retail space. The building was initially completed in 1928 as the headquarters for Brown Brothers Harriman & Co. and was converted to multifamily in 2004.
Common-area amenities include a fitness center, yoga studio, sky lounge and rooftop terrace with barbecues, social lounge, game room and golf simulator, as well as a children’s playroom. The property also has a library and business center, along with a resident-only speakeasy and lounge dubbed The Transcript.
Newmark Co-President of Global Debt & Structured Finance Jordan Roeschlaub, together with Vice Chairmen Nick Scribani and Chris Kramer, arranged the financing on behalf of the ownership.
Manhattan bustles with office-to-residential conversions
Office-to-residential conversions remain a hot topic for investors and developers alike. As work habits change and vacancy rates rise, repurposing these buildings into multifamily could address both the issue of underutilized office buildings and the housing shortage.
Manhattan is one of the most active markets for such redevelopments. At the beginning of the year, David Werner Real Estate Investments and Metro Loft Management landed $135 million in first-mortgage financing for the borough’s biggest office-to-residential conversion.
