GFP Real Estate Secures $192M for Historic Manhattan Office-to-Residential Conversion

GFP Real Estate secures $191.5M in construction financing from Derby Lane for the office-to-residential conversion of the historic 40 Exchange Place in Manhattan.

By: AXL Media

Published: Mar 11, 2026, 5:20 AM EDT

Source: https://www.multihousingnews.com/

Preserving Wall Street History

40 Exchange Place holds a significant place in New York City’s financial history, having once served as the home of the New York Stock Exchange. GFP Real Estate originally acquired the asset in 2015 for $115.5 million from Weiss Realty. By choosing conversion over demolition, GFP is preserving the architectural integrity of the Financial District while addressing the critical need for housing. The completed project will feature 382 apartments and ground-level retail space, blending 19th-century aesthetics with 21st-century residential standards.

Strategic Use of Tax Incentives and NYC’s 467-m Program

A key driver of the project’s financial viability is GFP’s aggressive use of state and federal incentives. The development is utilizing Federal and State Historic Rehabilitation Tax Credits to offset conversion costs. Most notably, the project is one of the early adopters of New York City’s 467-m program (the Affordable Housing Commercial Conversion Tax Incentive). This legislation provides a 35-year tax abatement for projects that commence construction before June 30, 2026, and include a dedicated affordable housing component—a requirement GFP is meeting by designating a portion of the 382 units as affordable.

The Rise of Alternative Debt: Derby Lane’s Market Entry

The financing for 40 Exchange Place marks a major milestone for Derby Lane Partners. Launched in late 2025 by Adam Piekarski (formerly of BDT & MSD Partners) with $1.8 billion in initial capital, Derby Lane has quickly positioned itself as a go-to lender for the "office-to-resi" sector. With traditional banks remaining selective, alternative managers like Derby Lane are filling the liquidity gap for sophisticated sponsors like GFP. Newmark’s debt and structured finance team, led by Jordan Roeschlaub and Chris Kramer, orchestrated the deal, highlighting the continued importance of specialized brokerage in securing high-leverage construction debt.