Metro Loft, GFP, Rockwood, pay $250.8M to Edge Funds for office in Financial District

Metro Loft Management, GFP Real Estate and Rockwood Capital through the entity 25 Water Owner, LLC paid $250.8 million to Edge Funds and HSBC Alternative Investments through the entity 4 Nyp Ventures LLC for the office building (O4) at 25 Water Street in Financial District, Manhattan. The buyers plan to convert the property to residential.
The deal closed on December 21, 2022 and was recorded on December 28, 2022. The property has 1,016,406 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $246 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 Real Deal first reported the sale was in contract. The contract date was September 20, 2022. The Commercial Observer reported that HSBC Alternative Investments was a partner with Edge. The property was formerly known as 4 New York Plaza.

Prior sales and revenue

The 1,016,406-square-foot property generated revenue of $41.9 million or $41 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 167 feet and is 297 feet deep with a total lot size of 54,023 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 $129.6 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 two DOB violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 31, 2012. On the lot, there is one active major alteration construction project for a 1,263-unit, 898,611 square-foot J-2 building. The project was submitted by GFP Real Estate and filed by Scott Beadle with plans filed November 3, 2022 and it has not been permitted yet.

The neighborhood

In Financial District, The majority, or 74 percent of the 80.1 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 7th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

There are no active new building construction projects on this tax block.

All properties are office.

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