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Monday, December 12, 2022

Goldman’s Former Broad Road Tower Eyed for Housing Conversion

(Bloomberg)—Manhattan builders have discovered one other potential workplace to transform to residences: the previous Goldman Sachs Group Inc. headquarters at 85 Broad St.

Fortress Funding Group and Metro Loft Administration are nearing a deal to accumulate a stake within the 30-story Monetary District constructing, with plans to redevelop it into housing, in line with folks accustomed to the matter.

Landlord Ivanhoe Cambridge, the true property unit of Caisse de Dépôt et Placement du Québec, will keep an possession curiosity, the folks mentioned, asking to not be named as a result of the discussions are non-public. Talks are ongoing and no deal is finalized.

Goldman Sachs, which now not has ties to 85 Broad St., constructed the 1.1-million square-foot (102,000-square-meter) tower within the Eighties, and it served because the financial institution’s headquarters till 2009, when it started shifting to its present spot at 200 West St. The constructing had a emptiness fee of roughly 20% earlier this yr, and counts WeWork Inc. and Oppenheimer Holdings Inc. as main tenants.

Spokespeople for Ivanhoe Cambridge and Metro Loft declined to remark, whereas a Fortress consultant didn’t instantly reply to messages searching for remark.

With many older workplace towers sitting largely empty or dealing with mounting prices for renovations, landlords together with SL Inexperienced Realty Corp. to Silverstein Properties have been exploring alternatives to transform the properties into residences. Silverstein is elevating $1.5 billion to kick-start a platform centered solely on workplace conversions, Bloomberg reported final week.

As of the third quarter, about 28% of the workplace house within the Monetary District was obtainable, above Manhattan’s general common of 18%, in line with Savills Analysis. Many workplaces in decrease Manhattan had been transformed to rental flats or condominiums following the 2001 terrorist assaults. One of many newest tasks and largest conversions within the space is One Wall Road, developed by Macklowe Properties.

Metro Loft has been a prolific developer of residential conversions. Earlier this yr, it agreed to purchase Rudin Administration Co.’s 55 Broad St. alongside developer Silverstein Properties. Goldman Sachs had beforehand been a tenant at 55 Broad, earlier than its 85 Broad tower was constructed.

Metro Loft can also be in contract to purchase 25 Water St., previously referred to as 4 New York Plaza, with its companions, in a plan to show the constructing into housing models.

To contact the writer of this story: Natalie Wong in New York at [email protected]

© 2022 Bloomberg L.P.

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