GDS Development JV Lands $90M for Manhattan Office Tower

1245 Broadway. Image courtesy of GDSNY

GDS Development (GDSNY), in partnership with Sweden’s Corem AB, has secured a $90 million loan for its 200,000-square-foot trophy office building in Manhattan’s NoMad neighborhood. The note, which was provided by Deutsche Pfandbriefbank AG (pbb), will be used to finance current and future tenant fit-outs at 1245 Broadway. Newmark’s Jordan Roeschlaub, Dustin Stolly and Nick Scribani arranged the deal.

The 1245 Broadway financing marks pbb’s first Green Loan in the U.S. The German bank provides its Green Loans to companies which either acquire or revitalize buildings that meet strict environmental criteria, or invest in the existing asset’s sustainability.

Alan Rudikoff, co-founder of GDSNY, said in prepared remarks that 1245 Broadway is well-positioned to capitalize on the flight-to-quality trend that office buildings are currently experiencing.

A LEED Gold-certified office building

GDSNY began construction on 1245 Broadway in January 2019, delivering the 23-story office tower in 2020. The Skidmore, Owings & Merrill-designed building earned a LEED Gold certification for its eco-conscious layout and construction features that include touchless technology and high air quality standards. Up to 14-foot ceiling heights, food and beverage catering and a private club are some of the tower’s amenities.

The office building is currently home to high-profile tenants like A24, which signed a 15-year lease for four floors in October 2021. In recent years, the property has attracted several film, media, tech and creative arts tenants, including TV production studio 101 Studios, game design studio Avalanche Studios, advertising firm GumGum and film and TV production company Wonderview Studios.

Developing assets across NYC

Since its founding in 2007, GDSNY has delivered more than $4.5 billion in real estate assets throughout New York City. The vertically-integrated firm has experience with multifamily and commercial projects across the metro, working on everything from ground-up developments to adaptive reuses.

Previously, GDSNY developed 28 & 7, a 100,000-square-foot Class A office building in Manhattan’s Chelsea neighborhood, alongside Corem subsidiary Klövern AB. The two companies broke ground on the project in late 2019, delivering the tower in 2021.