SoMA at 25 Water Street Office-to-Residential Conversion

Deal value: $250,000,000

Acquisition and conversion of the former 25 Water Street office building in Manhattan into SoMA, a mixed-use tower with 1,320 residential units, ground-floor retail, and extensive amenities. Includes a 35-year affordability-linked tax abatement and public-private partnership elements.

The core investment motivation is to capitalize on the structural shift in Manhattan’s real estate market, where demand for office space has declined post-pandemic while housing shortages and policy incentives have increased the appeal of large-scale residential conversions. The project leverages a unique opportunity: acquiring a well-located, underutilized office asset and transforming it into a high-density, amenity-rich residential tower, supported by a 35-year affordability-linked tax abatement. The fundamental belief driving this allocation is that urban living demand, especially for mixed-income and amenity-driven housing, will remain resilient and that public-private partnerships can unlock value in obsolete office stock.