GFP & TPG Plan 798-unit Office-to-Resi Conversion in FiDi

GFP Real Estate and TPG Real Estate Partners have submitted a significant alteration proposal to convert the office building at 212 Broadway, located in Manhattan's Financial District, into a residential building. The plan, filed with the New York City Department of Buildings on August 7, 2024, outlines the transformation of the 31-story structure from its current commercial use into a residential building featuring 798 units. The architect on record for this project is CetraRuddy Architecture.

Acquisition and Background

The property, also known as 222 Broadway, was purchased by GFP Real Estate and TPG Real Estate Partners from DWS Group on April 18, 2024, for $147.5 million. This acquisition was first reported by The Real Deal earlier in the year. The plan includes converting the building's existing commercial spaces into residential units, with around 480 of the units to be located on floors three to 14. The ground floor will be reserved for retail purposes.

Property Details

The office building currently spans 756,138 square feet and sits on a lot that is 117 feet wide and 237 feet deep, with a total lot size of 33,339 square feet. The property is zoned C5-5, allowing for a floor area ratio (FAR) of up to 15 for commercial use and up to 10 for residential use with inclusionary housing. As of 2022, the city-designated market value for the property is $214.6 million.

Financial Performance and Legal Status

The property generated $41.9 million in revenue, equating to $55 per square foot, according to the latest income and expense figures. In the past year, it has incurred one DOB violation and $18,770 in OATH penalties. There have been no lawsuits or bankruptcies filed against the property within the last 24 months.

The Financial District Overview

The Financial District is predominantly an office space hub, with 74% of its 79.9 million square feet of commercial space dedicated to office buildings. The neighborhood has experienced substantial activity in both sales and development, ranking 4th in sales turnover with $2.6 billion in sales over the last two years and 3rd in development activity with 10 million square feet of commercial and multi-family construction underway.

Block and Ownership Information

On the tax block where 212 Broadway is located, TPG Real Estate Partners is identified as the owner of one of the four commercial properties, collectively covering 756,138 square feet out of the block’s total 986,988 square feet. Another recent project on the block includes a 298-unit hotel/dormitory/shelter building, filed in 2015 and permitted in 2016.

GFP Real Estate’s Portfolio

GFP Real Estate owns a significant portfolio in New York City, including 16 commercial properties with a total of 4,896,795 square feet and a city-determined market value of $1.1 billion. The majority of their holdings are office properties, with a small portion dedicated to industrial use. Most of their assets are concentrated in Manhattan, with a minor presence in Brooklyn.

Nearby Real Estate Activity

In the vicinity of 22 Ann Street, there have been four notable commercial real estate transactions over the past 24 months, including two significant sales and loans. The most recent sale involved an 81-unit hotel at 17 John Street, purchased for $64.5 million, and a $62 million loan secured by the same property.