RXR takes minority stake in $500M 55 Broad Street recap

RXR bought a minority interest in 55 Broad Street, a 571-unit Lower Manhattan rental conversion, as part of a recapitalization that values the building at roughly $500 million, according to Commercial Observer, which first reported the deal.

RXR did not disclose the size of its stake, but invested through RXR Cardinal Venture, which it launched with the North Carolina Investment Authority in February. Wells Fargo supplied a $305 million senior loan, and Macquarie Capital Principal Finance participated as a capital partner.

For family offices weighing conversion co-investments, a $305 million senior loan against a roughly $500 million valuation is about 61% loan-to-value on a building RXR says is 95% occupied. Because the conversion is complete and occupied, the financing is priced against stabilized income rather than construction risk. RXR's minority position sits in the equity slice behind the loan, alongside Silverstein, MetroLoft and Macquarie.

Silverstein Properties and MetroLoft bought the building from Rudin for $180 million in May 2022, when it was still offices, Commercial Observer reported at the time. The conversion to 571 mixed-income apartments was completed in 2025, and RXR says about 75% of the units are market rate and 25% are designated affordable.

Newmark arranged the recap. Commercial Observer reported, citing sources, that the transaction is the first office-to-residential conversion sale under the 467-m tax abatement.