RXR Takes Minority Stake in Silverstein, MetroLoft's 55 Broad Street as Wells Fargo Provides $305 Million Loan

Newmark Group, Inc. (Nasdaq: NMRK) announced Nov. 13 that it arranged the recapitalization and $305 million financing for 55 Broad Street, a newly completed, 571-unit multifamily property in Downtown Manhattan. The transaction involves the acquisition by RXR of a minority interest in the property at a valuation in excess of $500 million. Silverstein Properties and MetroLoft acquired the building in 2023 and subsequently converted it to residential use.

Wells Fargo provided the loan to the new joint venture entity. Newmark's New York Capital Markets Group served as exclusive advisor on both the recapitalization and the financing, the firm said.

Recapitalization Brings RXR Into 55 Broad Street

Under the transaction, RXR becomes a minority investor in the property alongside Silverstein Properties and MetroLoft, which continue to own and sponsor the asset through the joint venture. The announced valuation of more than $500 million compares with the $172.5 million Silverstein Properties and MetroLoft paid in 2023 to acquire the former office building from the Rudin family. The difference does not reflect sponsor profit, as it does not account for conversion costs, financing costs or additional capital invested.

The $305 million loan from Wells Fargo equates to less than roughly 61% of the stated minimum valuation. The valuation implies more than approximately $876,000 per unit and more than approximately $1,420 per gross square foot.

The new financing follows the $220 million construction loan arranged through Banco Inbursa for the conversion. Macquarie Capital Principal Finance was also a capital partner in the recapitalization.

Newmark Team Advised Sponsors and Arranged Debt

Newmark Co-Head of U.S. Capital Markets Adam Spies, Executive Vice Chairman Adam Doneger and Executive Managing Director Avery Silverstein represented Silverstein Properties and MetroLoft in the recapitalization. Newmark Co-Head of Global Debt & Structured Finance Jordan Roeschlaub and Vice Chairman Chris Kramer arranged the Wells Fargo loan for the joint venture entity.

Property Details: A 571-Unit Financial District Conversion

55 Broad Street is a 35-story, 352,096-square-foot building that underwent a comprehensive office-to-residential conversion completed in 2025. The property has 571 residential units, including 428 market-rate and 143 affordable apartments, along with approximately 8,340 square feet of ground-floor retail space. Affordable units make up about 25% of the total.

Residences feature oversized windows, custom Italian kitchens and modern finishes. Amenities include a double-height attended lobby, fitness center, resident lounge, coworking space, sports simulator and a rooftop pool and sundeck with views of Downtown Manhattan. The building is approximately 95% occupied.

The project was initially described as a conversion of approximately 410,000 square feet of office space. The completed-project figure of 352,096 square feet may reflect differing measurement bases before and after conversion, such as gross versus net rentable area.

Location in Manhattan's Financial District

The building sits in the Financial District, with access to Wall Street, the World Trade Center, Battery Park and the Seaport District. It is within walking distance of multiple subway lines, the World Trade Center transportation hub, PATH service and ferry connections.

Market Context: Office-to-Residential Conversions

The recapitalization comes as office-to-residential conversions draw attention in Manhattan, where older, high-vacancy office buildings face weaker demand and elevated capital costs while housing supply remains constrained. The sponsors cited 55 Broad Street's floor plates, ceiling heights and location as favorable characteristics for conversion. The transaction gives Silverstein Properties and MetroLoft a partial liquidity event while retaining ownership through the joint venture, and adds an institutional partner in RXR following completion of the project.

Sources

Newmark Group, Inc. press release via PR Newswire: https://www.prnewswire.com/news-releases/silverstein-and-metroloft-complete-jv-recapitalization-and-financing-with-rxr-for-55-broad-street-302939338.html