SILVERSTEIN PROPERTIES AND METRO LOFT ACQUIRE 55 BROAD STREET
One of the largest office-to-residential conversions in NYC will create
571 market-rate apartments in Lower Manhattan
NEW YORK, July 31, 2023 – Silverstein Properties, a national real estate investment, development, and management firm, and Metro Loft Management, the largest developer of office-to-residential conversions in New York City, today announced the acquisition of 55 Broad Street, a 30-story office building in New York’s Financial District, for $172.5 million from the Rudin Family, who will retain an equity stake in the project. Funds managed by Ares Real Estate acquired a preferred equity interest in the project. The partnership is planning to convert the 410,000-square-foot building into 571 market rate apartments, making it one of the largest office to residential conversions in New York.
“Amid a citywide housing shortage, our conversion of 55 Broad Street will create hundreds of new apartments in Lower Manhattan,” said Marty Burger, CEO of Silverstein Properties. “As our local and national policymakers look to conversions as a critical way to generate new housing, Downtown continues to be a model mixed-use neighborhood, offering lessons to cities across the country. We are excited to partner with Metro Loft on one of the city’s largest conversions.”
“Our team is very excited to work with Silverstein and CetraRuddy to breathe new life into 55 Broad Street and realize its transformation into a luxurious and dynamic residential community,” said Nathan Berman, Founding Principal of Metro Loft.
“Silverstein and Metro Loft have both been part of Downtown’s incredible transformation and renewal over the past 20 years,” said David Marks, Head of Acquisitions for Silverstein Properties. “We are excited to continue our work enhancing the neighborhood with this sustainable adaptive re-use project. There is no better time to repurpose older office products into modern residential uses.”
“Ares is excited to partner with Silverstein Properties and Metro Loft Management to convert 55 Broad Street into a highly amenitized residential community in the perennially undersupplied Manhattan market,” said Andrew Holm, Partner and Co-Head of U.S. Investments in Ares Real Estate. “This investment highlights our ability to invest in assets going through a change of use and our ability to deliver creative financing solutions.”
“As the original developer of 55 Broad Street and long-time investors in Lower Manhattan, we are thrilled to continue to play a part in this exciting new chapter for the building,” said Michael Rudin, Executive Vice President of Rudin. “In addition to creating 571 new apartments in New York City, this conversion represents yet another important milestone in Downtown’s ongoing transformation into a model 24/7 community.”
Banco Inbursa from Mexico City, which has a long-standing relationship with Silverstein Properties, provided the debt financing to the project. Gary Phillips from Eastdil served as the broker in the transaction, and also arranged financing with Christopher Peck from Jones Lang LaSalle.
Designed by Emery Roth & Sons, 55 Broad opened in 1967. It served as the headquarters for Goldman Sachs until 1983. Today the building is approximately 60% occupied. The architect for the conversion project is CetraRuddy Architecture.
“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, FAIA, Founding Principal of CetraRuddy Architecture. “In converting the building from commercial to residential use, we recaptured floor area that was then used to add additional square footage at the top of the building, which added value to the investment.”
Construction is expected to begin next month and will be completed over a two-year period. The 571-unit residential property will include layouts ranging from studios to three-bedroom apartments. Designed with a high level of hospitality, quality spaces and finishes, amenities at 55 Broad will include a private club, wellness and fitness activities, an elegant co-working space, and multiple social spaces, in addition to a 45-foot-long rooftop pool, landscaped sundeck, and grill area.
The partnership is committed to maximizing sustainability on this project: we will be converting the entire building to electric, using sustainable and recycled materials and environmental systems, and expect to achieve LEED certification. This type of adaptive reuse has many sustainable benefits over ground up construction as most of the carbon intensive building materials (concrete, metal, and steel) are being re-used. Upon completion, 55 Broad is projected to have energy usage 22% lower than the existing office building.
Silverstein and Metro Loft are vertically integrated real estate development and management firms who collectively are among the most active groups in Lower Manhattan. Silverstein is best known for the development of the World Trade Center. In 2021, Silverstein acquired 116 John Street, which was converted to residential use in 2013 by Metro Loft. Silverstein developed and opened the Four Seasons Downtown at 30 Park Place in 2016; and developed, owns, and manages two residential rental buildings on 42nd Street – Silver Towers and River Place – with a total of 2,280 units, including 548 affordable housing apartments.
As a pioneer in office-to-residential conversions in Lower Manhattan, Metro Loft has spent the past two decades redeveloping some of the most iconic buildings in downtown New York City, including landmarks such as 443 Greenwich Street, 20 Exchange Place, 63 Wall Street, 67 Wall Street, 180 Water Street, and 20 Broad Street. The firm has converted more than 3.5 million square feet of offices in Lower Manhattan into thousands of residential units.
Silverstein and Metro Loft’s conversion will continue what has become a tradition of the successful repurposing of offices for new housing in Lower Manhattan. Mayor Adams has pointed to the area’s success as a case study for Midtown. Following initial waves of projects in the 1990s and early 2000s, more than 19 million square feet of offices in Lower Manhattan have been converted into apartments since 1995, according to the Alliance for Downtown New York. At the same time, city census data shows the population residing in Manhattan has increased since 2010, recently increasing by more than 17,000 residents between 2021 and 2022.
For photos and renderings of 55 Broad Street, click here.
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About Silverstein Properties
Silverstein Properties is a privately held, full-service real estate development, investment and management firm based in New York. Founded in 1957 by Chairman Larry Silverstein, the company has developed, owned, and managed more than 40 million square feet of commercial, residential, retail, and hotel space. Recent projects include 7 World Trade Center, the first LEED-certified office tower in New York City (2006), 4 World Trade Center (2013), Four Seasons Walt Disney Resort (2014), the Four Seasons Downtown and 30 Park Place (2016), One West End (2017) and 3 World Trade Center (2018). For more information, please visit www.silversteinproperties.com.
About Metro Loft
Metro Loft is a vertically integrated real estate development and management company founded in 1997 by Nathan Berman, who continues to serve as the managing principal. The company specializes in commercial-to-residential conversions in New York City, with a focus on Lower Manhattan. For over 20 years, Metro Loft has pioneered residential conversions in Lower Manhattan, earning a reputation as the leading conversion developer with more than 5 million square feet of successful deliveries.
Rudin is a full-service real estate organization, and one of New York City’s largest private owners, operators and developers of best-in-class real estate. Among its real estate holdings are 15 commercial office buildings containing approximately 10.1 million square feet of space and 17 apartment buildings comprising over four million square feet of residences.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2023, Ares Management Corporation's global platform had approximately $360 billion of assets under management with more than 2,600 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
Established in 1987, CetraRuddy is a New York-based, award-winning global architecture, planning, and interior design firm driven by design excellence and the creating of one-of-a-kind experiences. Founded by Principals John Cetra, FAIA and Nancy J. Ruddy, and led by a core group of distinguished principals, the highly respected firm’s portfolio includes works throughout the United States and abroad, and across typologies. Recent projects by CetraRuddy include iconic Manhattan landmarks such as One Madison, ARO, 443 Greenwich, the acclaimed new tower Rose Hill, as well as Lincoln Square Synagogue and Fotografiska Museum NYC. CetraRuddy is a thought leader in designing next generation multifamily housing that reflects new live/work/play patterns in housing. In addition to their ground up practice, CetraRuddy has been at the forefront of adaptive re-use and conversion of commercial properties to residential for over 35 years.
Dara McQuillan, firstname.lastname@example.org, 212-551-7352
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