GFP Real Estate Acquires 222 Broadway for 800-Unit Residential Conversion

GFP Real Estate has secured the purchase of the 776,448-square-foot office building located at 222 Broadway in lower Manhattan for $150 million. The acquisition is part of a plan to transform the property into a residential complex comprising 600 to 800 apartment units.

Background

Deutsche Asset Management, the former owner, acquired a 95 percent stake in the building in 2014 for $502 million. Despite its high initial value, the property is currently only 31 percent occupied.

Tenant Dynamics

Previously, Bank of America occupied a significant portion of the space, totaling 595,953 square feet. However, upon the expiration of its lease last year, the bank vacated the premises. WeWork Inc. was also a tenant, though no longer present. Presently, JPMorgan Chase remains as the sole office tenant, with Zara occupying the ground-floor retail space.

Transaction Details

The sale of 222 Broadway was facilitated by Newmark, marking a significant transition in ownership and future usage of the property.

GFP Real Estate's acquisition of 222 Broadway represents a strategic move to repurpose the underutilized office space into a residential hub, aligning with evolving market demands and maximizing the property's potential.