- RXR is leading a $500M recapitalization of 55 Broad’s office-to-residential conversion.
- The joint venture involves Silverstein Properties, Metro Loft Management, and RXR.
- 55 Broad, now 571 units, was 76% occupied as of September.
- This transaction is seen as a key test for the office conversion market.
Major Recapitalization for Residential Conversion
Scott Rechler’s RXR is leading a $500M recap of 55 Broad Street. This marks a major office conversion in Manhattan. The building once served as Goldman Sachs’ headquarters. Developers converted it into a 571-unit multifamily property. Silverstein Properties and Metro Loft Management led the transformation, according to The Real Deal. RXR joined through a new joint venture with the developers. The firm will help complete construction and stabilize leasing.
Investor Structure and Market Context
The recapitalization likely takes the form of preferred equity. It provides short-term funding to refinance the original construction loan. Leasing efforts will continue during this period. Newmark, led by Adam Spies and Adam Doneger, brokered the deal. This investment reflects growing interest in office-to-residential conversions across New York. Rising rates and shifting tenant demand continue to reshape the market.
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Broader Conversion Momentum
Office conversion recap activity is rising across New York. Major projects include Metro Loft’s 1,600-unit Pfizer HQ conversion. Another example is the 1,320-unit project at 25 Water Street with fresh refinancing. At the same time, declining office values continue to push more owners toward residential conversions as a viable exit strategy. These moves show strong confidence in housing demand and institutional backing.
What’s Next
The 55 Broad Street deal is closely watched within the CRE sector, viewed as a bellwether for future office-to-residential recap activity. If leasing and long-term sale efforts succeed, expect renewed momentum for similar conversions across Manhattan.
