Newmark Arranges $66.5 Million JPMorgan Refinancing for ZG Capital Partners' Restored Union Square Office Building

NEW YORK — Newmark has arranged a $66.5 million refinancing from JPMorgan on behalf of ZG Capital Partners for 836–838 Broadway, a six-story mixed-use office building in Manhattan's Union Square neighborhood, the firm announced Sept. 29, 2026. The new loan replaces a prior $28.9 million mortgage on the property.

Deal Details: ZG Capital Partners Recapitalizes Repositioned Asset

ZG Capital Partners acquired 836–838 Broadway as a vacant property in December 2021 for approximately $39 million. The firm subsequently invested more than $20 million in a comprehensive repositioning of the building, which was originally constructed in 1876 as a commercial store and features a historic red cast-iron façade built by the J.B. & W.W. Cornell Ironworks in the French Second Empire style.

The renovation included restoration of the cast-iron exterior, a complete interior reconstruction, construction of a new core to accommodate an additional elevator, modernized building systems, a redesigned lobby and furnished office suites with high-quality finishes. The building, located at the southwest corner of Broadway and East 13th Street — also extending to 72–74 East 13th Street — is one block south of Union Square.

"When we bought the building, the exterior was magnificent, but the inside needed to be completely rebuilt," said Bobby Zar, Founder of ZG Capital Partners. "We wanted to preserve its history while creating something exceptional inside. We paid attention to every detail — from the construction and finishes to the furnishings tenants experience every day."

The property is now 100% leased, with a weighted average lease term of more than seven years. Its floor plates measure approximately 13,600 square feet across six stories.

Newmark Team Arranges Financing

Newmark Senior Managing Director Daniel Fromm, Director Tim Polglase and analysts Jack Fenton and Stavros Giannakopoulos arranged the financing on behalf of ZG Capital Partners.

"ZG Capital Partners' significant investment and attention to detail created a one-of-a-kind office property," Fromm said. "The quality of the finished building and its leasing performance generated strong lender interest in the refinancing."

Manhattan Office Market Context

The transaction reflects improving conditions in the Manhattan office market, particularly for well-leased, repositioned assets. Manhattan's overall office vacancy rate declined to 19.3% in the second quarter of 2026, the lowest quarterly level since the third quarter of 2021. Manhattan office investment volume increased 31% year over year to $3.53 billion across 38 transactions during the first half of 2026, with investors concentrating on properties with strong occupancy, durable cash flow and long-term leases.

Midtown Manhattan's prime-office vacancy rate fell to 2.2% in the second quarter, well below the broader U.S. office vacancy rate of 18.3%. In the Madison/Union Square and SoHo submarkets, positive absorption contributed to the decline in Manhattan vacancy during the first quarter. Newmark reported first-half Midtown leasing of 15.8 million square feet, up 20.9% year over year — described as the strongest first-half performance on record — with average asking rent reaching $83.44 per square foot and availability at 12.8%.

836–838 Broadway's location near the Union Square transit hub, along with its small-to-mid-sized floor plates and furnished suites, positions the property to attract tenants seeking turnkey space in the submarket.

About the Firms

Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate advisory and services firm. For the 12 months ended June 30, 2026, Newmark generated revenues of more than $3.6 billion. As of that date, Newmark and its business partners operated from more than 195 offices with over 10,000 professionals across four continents.

ZG Capital Partners is a real estate investment firm founded by Bobby Zar.

Sources: Newmark press release, Sept. 29, 2026