GFP, TPG sign $222.8M construction loan with BDT & MSD Partners for 798-unit conversion in FiDi

GFP Real Estate and TPG Real Estate Partners through the entity Broadway 2024 Lessor, LLC as borrower signed a renovation construction loan with lender BDT & MSD Partners [transactions & more] through the entity BDT & MSD RSLP Lending B, LLC valued at $222.8 million for the office building (O4) at 222 Broadway in Financial District, Manhattan.
On the lot, there is one active major alteration construction project, M01084591, for a 798-unit, 638,719 square-foot J-2 building. The project was submitted by GFP Real Estate and filed by Scott Beadle with plans filed August 7, 2024 and it has not been permitted yet.
The deal closed on December 20, 2024 and was recorded on January 14, 2025. The property has 756,138 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $294 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on April 18, 2024, for $147.5 million. The signatory for GFP Real Estate and TPG Real Estate Partners was Brian Steinwurtzel.

The property

The office building in Financial District has 756,138 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 117 feet and is 237 feet deep with a total lot size of 33,340 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $214.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received three DOB violations and $15,200 in OATH penalties in the last year.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 13.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 756,138 square feet of the 986,988 square feet. The identified owner is Tpg Real Estate Partners.
On the tax block, there was one new building construction project filed totaling 107,348 square feet. It is a 298-unit, 107,348 square-foot hotel/dormitory/shelter (R-1) building submitted by William Brodsky with plans filed June 26, 2015 and permitted March 3, 2016.

The majority, or 87 percent of the 986,988 square feet of built space are office buildings, with hotel buildings next occupying 12 percent of the space.

The borrower

The PincusCo database currently indicates that GFP Real Estate owned at least 18 commercial properties with eight residential units in New York City with 5,195,018 square feet and a city-determined market value of $1.1 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 98 percent of the 5,195,018 square feet of built space are office properties, with industrial properties next occupying 1 percent of the space. The bulk, or 98 percent of the built space, is in Manhattan, with Brooklyn next at 2 percent of the space.
The PincusCo database currently indicates that TPG Real Estate Partners owned at least three commercial properties in New York City with 1,070,638 square feet and a city-determined market value of $274.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are office properties. They are all located in Manhattan.

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