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Broad Street Development, led by Raymond Chalme and Daniel Blanco, has recapitalized the Maritime Building at 80 Broad Street in Lower Manhattan and secured a $175 million construction loan to advance an office-to-residential conversion. The 400,000-square-foot office tower will be redeveloped into 326 rental apartments under New York City’s 467-m office-to-residential tax incentive program, positioning the historic property for a new residential use.
The capital stack for the project is being provided through a joint venture between Broad Street Development, PCCP and One Investment Management. The recapitalization and new construction financing collectively clear a key hurdle for the adaptive reuse plan, enabling the partnership to formally move forward with the residential redevelopment of the Maritime Building.
Newmark advised the joint venture on the transaction. The Newmark team was co-led by U.S. Capital Markets co-head Adam Spies and executive vice chairman Adam Doneger, who provided strategic advice to the partners. On the debt side, Newmark co-president of Global Debt & Structured Finance Jordan Roeschlaub, vice chairman Nick Scribani, director Holden Witkoff and associate Niv Shahmoon arranged and secured the construction loan financing through Derby Lane Partners.
Broad Street Development has owned the Maritime Exchange Building since 2014. Over the past two years, the firm has focused on planning and advancing the conversion, laying the groundwork for the shift from office to residential use. With the recapitalization now in place and construction financing committed, the joint venture is formally launching the residential redevelopment phase.
In a statement, Chalme described the transaction as a significant milestone for both the asset and its surroundings, noting that the redevelopment will transform a historic Downtown office tower into a modern residential community. He added that the ownership group has long believed in the potential of the property and the neighborhood, underscoring the sponsors’ conviction in Lower Manhattan’s residential appeal.
The project illustrates how New York City’s 467-m incentive program is being deployed to support the conversion of older office buildings into housing, particularly in established business districts. By pairing new equity, structured as a joint venture among institutional partners, with a sizable construction loan, the Maritime Building’s recapitalization provides a framework for repositioning legacy assets in response to evolving demand.
The post Broad Street Development JV Recapitalizes 80 Broad for Lower Manhattan Residential Conversion appeared first on CRE Market Beat.
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