Broad Street Development and KSR Capital Secure $138M Refinancing for Building Near Grand Central Terminal

• Broad Street Development and KSR Capital completed a $138 million refinancing and recapitalization of 370 Lexington Avenue in Manhattan.
• ACORE Capital provided a $110 million senior loan to refinance existing debt and support the property's next phase of improvements.
• The 317,000-square-foot office building has increased occupancy from 82% to 92% amid strong leasing activity near Grand Central Terminal.

What the Refinancing Means for 370 Lexington Avenue

Ownership of 370 Lexington Avenue has secured a $138 million refinancing and recapitalization package as the Grand Central office market continues to show signs of recovery. The transaction was completed by Broad Street Development and KSR Capital for the 317,000-square-foot office tower located one block from Grand Central Terminal. ACORE Capital provided a $110 million senior loan, which was used to retire the property's previous financing from Invesco. The recapitalization positions ownership to continue investing in the asset while capitalizing on improving leasing momentum in Midtown Manhattan.

What Makes the Property Attractive to Investors

Located in Manhattan's Grand Central submarket, the Art Deco office tower benefits from direct access to one of New York City's busiest transportation hubs. The property sits steps from Metro-North Railroad, Grand Central Madison, multiple subway lines, and regional transit connections, making it particularly attractive to small and mid-sized office tenants seeking convenience and accessibility. Originally constructed in 1927, the building was designed by renowned architect William Van Alen, best known for designing the Chrysler Building shortly afterward.

What Improvements Are Planned Next

As part of the recapitalization, ownership plans to invest an additional $10 million into the property. The capital will be directed toward building upgrades, tenant improvements, and leasing initiatives aimed at further modernizing the office tower and attracting new tenants. The strategy builds upon a repositioning effort launched after Broad Street Development reacquired the property in 2018. Over the past several years, the ownership group has focused on operational enhancements and capital improvements designed to elevate the building's competitiveness within the Midtown office market.

What Leasing Activity Says About the Market

The refinancing comes after a strong period of leasing activity at the property. During 2025, ownership completed approximately 69,000 square feet of new leases and 25,000 square feet of renewals. Leasing momentum continued into 2026, with more than 40,000 square feet of additional activity completed over the past six months. As a result, occupancy has increased from 82% to 92%, leaving only limited vacancy within the building. Current tenants include healthcare provider Coral Care and digital marketing agency Sircle Media, among other office users.

What This Means for the Grand Central Office Market

The transaction highlights continued lender interest in well-located office properties that demonstrate strong leasing fundamentals and access to major transportation infrastructure. While challenges remain across portions of the office sector, assets near Grand Central have benefited from renewed tenant demand as companies prioritize transit-oriented locations and upgraded workspace environments. For Broad Street Development and KSR Capital, the refinancing provides additional flexibility to continue enhancing the property while positioning it for future growth in one of Manhattan's most important office corridors.