TPG & Partners Plan 2 Residential Conversions at 222 Broadway & 101 Franklin Street, NYC

TPG, formerly known as Texas Pacific Group, is investing in two buildings in New York City with the intention of converting them from office spaces to residential units. This strategic move aims to capitalize on the growing trend of office-to-residential conversions.

Acquisition Details

The private equity firm has completed the purchase of 222 Broadway for $150 million. Additionally, TPG is in contract to acquire 101 Franklin Street in collaboration with Skylight Real Estate Partners and Cannon Hill Capital Partners, with the deal exceeding $100 million. Jeff Gural’s GFP Real Estate is partnering with TPG on the 222 Broadway acquisition, which has officially closed.

Sellers and Brokers Involved

The seller of 222 Broadway is DWS, the asset management division of Deutsche Bank. Columbia Property Trust is selling the Franklin Street property. Newmark's co-head of U.S. capital markets, Adam Spies, alongside his team, marketed the properties. Despite requests for comments, none of the parties involved, including DWS, Columbia, TPG, Skyline, Cannon Hill, GFP, and Adam Spies, have provided statements.

Market Potential in Tribeca

There is optimism about the potential success of these conversions in Tribeca. Condominiums across from 101 Franklin Street, specifically at 56 Leonard Street, are selling for about $3,000 to $4,000 per square foot. These units, ranging from 1,000 to 2,200 square feet, are priced between $2.9 million and $4.8 million.

Rise of Office-to-Residential Conversions

Office-to-residential conversions are becoming increasingly popular. Jeff Gural recently regained control of the Flatiron Building with plans to convert it into residential units. After a failed partnership and a contentious auction process, Gural is now seeking $350 million in financing for the conversion in collaboration with the Brodsky Organization. This trend highlights the growing interest and potential profitability in transforming office spaces into residential properties.