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RXR takes minority stake in 55 Broad Street as $305 million loan closes

RXR takes minority stake in 55 Broad Street as $305 million loan closes

Money Moves

A former Goldman Sachs office tower, now 571 apartments, becomes the first completed New York conversion to sell a stake under the 467-m tax abatement.

2 days ago: Stake and $305 million loan close

Overview

Updated 1 hour ago

The 1967 tower at 55 Broad Street spent decades as offices, including a stint as Goldman Sachs' headquarters. It finished converting to 571 apartments in 2025, and on Nov. 13 its owners closed a $305 million Wells Fargo loan and sold a minority stake to RXR at a valuation above $500 million.

The read-through goes past one building. Commercial Observer reported this is the first sale of a completed office-to-apartment conversion under New York's 467-m tax abatement. That makes it a test of whether converted towers can now borrow and trade as stabilized housing rather than as construction projects.

Why it matters

If converted offices can borrow against stabilized rents, thousands of half-empty Manhattan buildings have a financing path to housing.

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Key Indicators

$500M+
Valuation in the recapitalization
The equity valuation Newmark and RXR put on the building, separate from the mortgage.
$305M
Wells Fargo senior loan
Financing arranged by Newmark for the new joint venture that holds the building.
61%
Loan-to-value on the senior debt
The $305 million loan measured against the roughly $500 million valuation.
571
Apartments in the converted tower
428 rent at market rates and 143 are income-restricted.
143
Affordable units
About a quarter of the building, though the original plan was all market-rate.
95%
Occupancy RXR cites
Up from roughly 76% when the building was listed for sale in September 2025.

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People Involved

Scott Rechler
Scott Rechler
Chairman and chief executive of RXR
Led the minority investment in 55 Broad Street
AS
Adam Spies
Co-head of U.S. capital markets at Newmark
Advised the sellers on both the equity and debt
AD
Adam Doneger
Executive vice chairman at Newmark
Represented Silverstein Properties and MetroLoft

Organizations Involved

RXR
RXR
Real estate investor and developer
Minority owner of 55 Broad Street

New York investor that bought a minority stake through its Cardinal Venture vehicle.
SP
Silverstein Properties
Real estate developer
Retained owner alongside MetroLoft and new partners

Co-developer of the 55 Broad Street conversion and seller of the minority stake.
MM
MetroLoft Management
Real estate developer
Co-owner and conversion partner

New York converter behind 55 Broad Street and other large office-to-apartment projects.
Newmark
Newmark
Real estate services firm
Exclusive adviser on both the equity and the loan

Brokerage that ran the sale process and arranged the Wells Fargo mortgage.
Wells Fargo
Wells Fargo
Bank
Senior lender on the recapitalized venture

Supplied the $305 million senior mortgage for the new joint venture.
MC
Macquarie Capital Principal Finance
Investment arm of Macquarie Group
Equity partner in the joint venture

Joined as a capital partner behind the Wells Fargo loan.

Timeline

2023 November 2026

6 events Latest: 2 days ago
Tap a bar to jump to that date

  1. Stake and $305 million loan close

    Latest Financing

    RXR buys a minority interest at a valuation above $500 million; Wells Fargo lends $305 million as Macquarie joins the equity.

  2. RXR agrees to lead the recapitalization

    Agreement

    RXR enters a joint venture with Silverstein and MetroLoft; one person describes the money as preferred equity.

  3. RXR launches Cardinal Venture

    Fundraising

    RXR sets up the vehicle with the North Carolina Investment Authority, later used for the 55 Broad stake.

  4. Building listed for sale above $500 million

    Sale process

    Newmark markets the property while it is roughly 76% occupied and still leasing up.

  5. Conversion finishes at 571 apartments

    Construction

    The building opens with 428 market-rate and 143 affordable units, plus ground-floor retail.

  6. Silverstein and MetroLoft buy the office tower

    Acquisition

    The developers pay $172.5 million for the former Goldman Sachs headquarters, with Rudin and Ares Real Estate keeping stakes.

Scenarios

1

Second completed conversion sells for $400 million or more

Possible Resolves by End of 2027

Discussed by: Commercial Observer and The Real Deal, both framing 55 Broad as a test case for the conversion pipeline

55 Broad Street's price only means something if another owner can get a comparable number. MetroLoft, GFP Real Estate and Rockwood Capital have already refinanced 25 Water Street, and MetroLoft's 1,600-unit project at the former Pfizer headquarters is still leasing. A sale of either at a similar valuation would confirm a market rather than a one-off.

2

RXR converts its minority stake into majority control

Possible Resolves by Q2 2028

Discussed by: The Real Deal, which reported RXR's initial position was structured as preferred equity

Preferred equity often converts or gets bought out when a property stabilizes. RXR entered at a $500 million valuation with a 61% loan-to-value and a building it says is 95% occupied, which puts it in position to consolidate if the sponsors want out.

3

55 Broad Street is sold outright to a new owner

Uncertain Resolves by End of 2027

Discussed by: Silverstein Properties, which said selling was the plan from the start

A minority recap is a way station, not an exit. If leasing holds and rates cooperate, the sponsors can sell the whole building to a long-term holder, the outcome Silverstein described when the conversion began. If rents soften, the sale waits.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2025

25 Water Street conversion refinancing (2025)

MetroLoft, GFP Real Estate and Rockwood Capital refinanced their 1,320-unit office-to-apartment conversion at 25 Water Street with an $835 million debt package from Apollo and GIC.

Then

The partners kept the building and replaced construction debt with longer-term financing.

Now

It established refinance-and-hold as the alternative to a sale for large Manhattan conversions.

Why this matters now

55 Broad Street took the other route: a partial sale at a set valuation. The two deals show the two exits available to conversion developers.

2023

55 Broad Street office purchase (2023)

Silverstein and MetroLoft agreed to buy the Rudin-owned tower for $180 million in 2022, then closed in summer 2023 at $172.5 million after rising interest rates pushed the deal.

Then

The buyers got a roughly 4% discount and financed the conversion with a $220 million construction loan from Banco Inbursa.

Now

The building became one of the largest office-to-residential conversions in the city at the time.

Why this matters now

The 2023 repricing set the cost basis that the $500 million-plus valuation now tests.

Sources

(5)
PR Newswire / Newmark Group Private Wealth Daily The Real Deal Commercial Observer TradingView News