Scott Rechler’s RXR is stepping in with roughly a $500 million recapitalization of 55 Broad Street, the Financial District tower that Silverstein Properties and Metro Loft recently turned into apartments. The cash infusion links a big institutional capital provider with two of New York’s busiest office-to-residential conversion teams and gives the owners fresh runway to finish leasing. For Manhattan, the deal serves as an early test of whether private-market buyers are ready to bankroll completed office-to-residential projects.
As reported by The Real Deal, RXR has agreed to form a joint venture with Silverstein and Metro Loft to recapitalize the 571-unit property. The outlet notes that a Newmark capital-markets team led by Adam Spies and Adam Doneger arranged the transaction, and one person familiar with the talks described RXR’s investment as preferred equity meant to stabilize the capital stack while leasing continues.
What RXR Is Buying Into
55 Broad is a 30-story, roughly 410,000-square-foot building that has been reshaped into 571 apartments and about 25,000 square feet of amenities that include rooftop pools, a private club and co-working spaces. Funds managed by Ares Real Estate and the Rudin family also hold pieces of the project after Silverstein and Metro Loft closed on the property in 2023, according to a company announcement.
The Financing Stack
The conversion was funded with a $220 million construction loan from Banco Inbursa, which JLL helped arrange for the sponsors during the acquisition and conversion phase. Funds managed by Ares took a preferred-equity position alongside the developers, and Rudin retained a stake in the capital structure as the project moved toward completion.
Where It Fits In Manhattan’s Conversion Surge
55 Broad is one of several very large office-to-residential projects that have reshaped Lower Manhattan in recent years. Metro Loft’s conversion of the former Pfizer headquarters at 219–235 East 42nd Street is expected to produce roughly 1,600 apartments, per New York YIMBY, and the SoMA redevelopment at 25 Water Street delivered about 1,320 units as covered by The Architect’s Newspaper.
What’s Next
The building was roughly 76 percent occupied when it hit the market last September, and the owners were targeting more than $500 million, a level that a fresh recapitalization could help make more appealing to long-term buyers. Sellers and RXR will now focus on finishing lease-up and then either securing longer-term financing or finding a buyer, an outcome that could influence pricing for other completed conversions across the city.
