GFP Real Estate Closes on $54M Refi for Vintage SoHo Office
A local bank was the source of the loan.
GFP Real Estate LLC has closed on a $54 million loan from Apple Bank to refinance 594 Broadway, a 12-story, 250,000-square-foot office tower in Manhattan’s SoHo neighborhood.
The new 10-year, floating-rate permanent loan matures in 2034 and replaces a 2013 loan, held initially by Capital One and later by Fortress Investment Group, that was paid off early in March 2024.
GFP Real Estate was represented by Newmark Senior Managing Director Paul Talbot in arranging the financing, and Cynthia Wang and Howard Hsu of Apple Bank represented the lender.
The building is nearly fully leased, and its major tenants include Hornet Animations, Housing Works, Studs and new-to-Soho-retailers Athleta and Wilson.
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Sited between West Houston and Prince streets, 594 Broadway was built in 1898 by Buchman & Deisler and was originally known as the Lyons Building. It features exposed brick, high ceilings, original columns, large windows and loft-like spaces that offer abundant natural light. The building is commuter-friendly, with major subway lines (6, R and W) only one block away.
Between 2000 and 2015, the building underwent various renovations to its lobby, restrooms, elevators, windows and HVAC. This year, it will unveil a renovated lobby interior designed by Gachot Studios, which is based in the building.
Slow but promising
Office leasing in Manhattan is down 3.4 percent year-over-year, and down 27.6 percent from the first quarter of 2022, marking the lowest first-quarter leasing activity since 2021, according to a report from Avison Young. On the positive side, the report notes that two-thirds of first-quarter leasing was new leases or relocations, “signaling a promising start to the year after renewal activity dominated in 2023.”
In SoHo specifically, total availability is 19.8 percent, close to the Midtown South average of 22.2 percent.
Last summer, two other vintage buildings on Broadway in SoHo received funding.
• KPG Funds closed on a three-year, $50 million construction loan to cover the renovation and repositioning of 40 Crosby, an 1873-vintage, 70,000-square-foot office building at 480 Broadway.
• HSR Corp. obtained $58 million to refinance a century-old, 140,000-square-foot Class A office building at 503–511 Broadway. Morgan Stanley funded the five-year, fixed-rate loan on a full-term interest-only basis.
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