RXR has secured $475 million in financing for its planned conversion of 61 Broadway, a 33-story office tower in Lower Manhattan’s Financial District, into residential apartments. According to the Commercial Observer, the funding includes $420 million in construction debt from Apollo Global Management and a $55 million tax equity investment from J.P. Morgan Chase. The deal was arranged by a JLL Capital Markets team comprising Andrew Scandalios, Drew Isaacson, and David Giancola.
The project will use the 467m tax abatement program designed to encourage office-to-residential conversions. Under this program, around 200 of the building’s projected 796 units will be set aside as affordable housing.
RXR filed initial plans for the conversion in December but did not disclose all details at that time. The firm previously faced financial difficulties at 61 Broadway. In December 2022, RXR defaulted on its loan for the property after halting payments on debt it took out in 2019. The original loan had a two-year term with three possible one-year extensions and reached maturity default in May 2023.
After defaulting, JLL listed a $240 million nonperforming loan tied to the property for sale. RXR considered handing over ownership through a deed in lieu of foreclosure if necessary, though this step was not ultimately taken.
Occupancy at the building had dropped to just 57 percent by that period. Knotel, which leased four floors totaling 60,000 square feet in 2019, later declared bankruptcy.
Construction is scheduled to start in March, with first apartment deliveries expected by early 2028. RXR is partnering with One Investment Management on the redevelopment.
In another Manhattan project, RXR is working with SL Green and Apollo Global Management on converting office space at 5 Times Square into up to 1,250 residential units—25 percent of which will be affordable—after securing a $575 million financing package last summer.
