RXR Joint Venture Secures $500 Million for Landmark Manhattan Office-to-Residential Conversion

RXR and One Investment Management secure $500M to convert 61 Broadway into 796 units, utilizing NYC’s 467-m program for mixed-income housing in the Financial District.

By: AXL Media

Published: Mar 11, 2026, 4:25 AM EDT

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

Capital Stack and Financing Structure

The complex financing for the 61 Broadway project was orchestrated by JLL Capital Markets. The bulk of the funding comes from affiliates of Apollo, which provided a $420 million construction loan. This is supplemented by a $55 million tax equity investment from JPMorgan. Because the 1913-built skyscraper is listed on the National Register of Historic Places, the developers are also leveraging state and federal historic tax credits to offset the high costs associated with retrofitting a century-old structure for modern residential use.

Regulatory Incentives and Affordable Housing Mandates

The project is a flagship participant in New York City’s 467-m conversion program. This legislative incentive provides essential tax abatements in exchange for the inclusion of affordable housing. Under the terms of the agreement, 25 percent of the 796 units—approximately 199 apartments—will be reserved for households earning 80 percent of the Area Median Income (AMI).

TRANSFORMATIVE ANALYSIS: Strategically, the 467-m program has become the "linchpin" for FiDi’s residential evolution. By de-risking the high capital expenditure of office conversions through tax relief, the city is successfully pivoting away from a strictly commercial business district toward a 24/7 mixed-use neighborhood. For developers like RXR, these incentives are the only way to make the "math work" on aging office assets that no longer meet modern corporate requirements.

Strategic Rationale: Breathing Life into Stranded Assets