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Silverstein Raising $1.5B Office-To-Residential Conversion Fund

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Bisnow/Andrew Nathanson

Silverstein Properties Chairman Larry Silverstein

One of New York City’s most prominent office developers has raised a large sum of money to save several office buildings from a dead end.

silverstein properties Seeking to raise $1.5 billion for financing office conversionhopes to acquire washed-out office towers in New York and other major cities and redevelop them into apartment buildings.

That $1.5 billion is just the beginning, says Silverstein CEO marty burger Said Bloomberg in an interviewSilverstein sees a potential “$10 billion or more” opportunity in office conversion. Secure Eastdill Acting as an advisor to Silverstein for its fundraising.

Silverstein is targeting Manhattan office buildings that may be starting to pile up debt, as well as office buildings with high vacancy rates. These properties are the sole focus of the developer’s acquisition team, Burger said.

“It’s the perfect storm where the housing market is so hot right now, not in favor of the office,” Berger told Bloomberg. “We hope that we can take some of these office buildings that may be outdated or not in the best office use and convert them to residential use, which the city desperately needs.”

Silverstein is looking beyond its home market to cities facing similar obstacles, including Washington, D.C., Boston and the West Coast.

Silverstein has already started making inroads, building a 30-story office tower at 55 Broad Street in Manhattan’s financial district in May of this year.this is project partnerMetro Loft, a leader in conversions in New York City, has built a 5 million SF residential property out of a former commercial building, according to its website.

Together, with Silverstein Metro Loft Plans to turn 55 Broad into market-priced homes, like Metro Loft did already done With several other FiDi buildings.

Last year Silverstein also acquired 116 John Street. Converted from another former FiDi office converted by Metro Lofts, it now features 416 units. According to StreetEasy.

We are also willing to finance conversions. In late August, Bamberton Group scored $272.5 million construction loan from Brookfield Real Estate Financial Partners 160 Water St. Vanbarton plans to transform a 24-story office tower into a 30-story multifamily residence.

But office remodeling can be expensive and difficult to do depending on factors ranging from the floorboards of the building to how water pipes and electrical infrastructure are integrated into the building. Another obstacle that makes the New York office conversion difficult is state issues. collective housing lawthe bedroom should have a window of a certain size facing the street.

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