Silverstein Properties and Metroloft Management have unveiled plans for 55 Broad Street. This is one of the biggest office transformations since the pandemic began.
Developers Buy a building in the financial district From Rudin Management in a transaction reported last month. However, the Wall Street Journal reported plans for developers to convert it into a residential building, rather than maintaining office assets.
The 30-story building will be 571 apartments with a market price. This includes layouts from studios to three-bedroom apartments across the 425,000-square-foot site. The conversion is expected to take 3-4 years.
The commercial observer reported last month that the landlord had signed a contract, but the deadline remains unknown.
Metroloft founder Nathan Berman told the journal that it was “the right evolution of these struggling, poorly performing, old office assets that are approaching obsolete.”
The Rudins developed the property in 1967 and intended to be the headquarters of Goldman Sachs in 1983. Since then, Rudin’s Chief Technology Officer and Chief Operating Officer, John Gilbert, has called him the “Godfather of Smart Buildings.” Boasts many financial services and technology tenants.
Rudin recently completed a renovation of the building, including a new lobby. The conversion requires further changes, but the developers told the journal that the properties are suitable for keeping the conversion budget at a reasonable rate. Berman estimates that remodeling costs one-third less than building a new apartment there.
Office renovations are becoming more and more of a concern for developers and landlords. During the pandemic, the office market became a crater.. Older office buildings in particular are less attractive to office tenants than ever before. Flying to quality left a question About the future of these old properties.
Berman has been remodeling office buildings for decades. The developer said earlier Genuine The only constraint on such a project is the “availability of light and fresh air” along with the budget.
Last month, some of the city’s largest commercial real estate landlords and brokers Discussed the possibility of conversion and GenuineReal Estate Showcase + Forum. In a panel discussion on the commercial office, Bob Knakal of JLL Capital Markets called for a reproduction of the 421-gram tax cut, said Chris Schrank, founder of the Savannah Fund. [percent of office space] Will be ripe for alternative applications. “
[WSJ] — Holden Walter-Warner