GFP Real Estate has snagged $191.5 million in financing to support the conversion of Lower Manhattan office tower, 40 Exchange Place, into a residential property.
The construction loan was provided by real estate credit solutions firm Derby Lane and facilitated by Newmark.
The move will mark the third residential transformation for GFP in Lower Manhattan. One of them, 25 Water Street, has already delivered, with 1,320 new apartments hitting the market recently. The former 1.1 million square foot office site landed an $835 million refinancing package in late 2025.
GFP's other project in Lower Manhattan, 222 Broadway, remains underway. The Commercial Observer reported last year that the developer secured $288 million in financing to support the conversion of the 770,416-square-foot office into 800 apartments.
Now, the redevelopment of 40 Exchange in the Financial District plans to transform the 20-story property into 383 multifamily units, which will consist of some affordable housing. Additionally, Newmark said that the project will include a "full suite of tenant amenities" and ground-floor retail space.
But GFP isn't the only one working on major office-to-residential conversions in Manhattan. In fact, Metro Loft, GFP's partner on the transformation of 25 Water Street, is involved with the former Pfizer headquarters, at 219 and 235 East 42nd Street. The redevelopment, which calls for 1,602 luxury apartments, secured a $720 million loan in May, marking the largest ever supplied for an office-to-residential transformation in New York City's history, at the time.
Then there's the 5 Times Square project, which will transform a 38-story skyscraper into 1,250 new homes (313 units permanently affordable. The Empire State Development (ESD) and Board of Directors approved the project in May 2025.
The popularity of office-to-residential conversions has picked up, as NYC deals with a housing affordability crisis. In fact, 15.5 million square feet of office space has either started conversion or is in the plans for one, according to research from Newmark.
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