Broad Street, KSR Secure $138M Recap for Manhattan Tower
The Grand Central-area building totals 370,000 square feet.
Broad Street Development and KSR Capital have obtained $138 million to refinance and recapitalize 370 Lexington Ave., a 317,000-square-foot office tower in Manhattan’s Grand Central submarket.
The recapitalization paid off the previous lender, Invesco, and included a $110 million senior loan funded by ACORE Capital. The original loan from Invesco was for $100 million and dated to 2018, according to Yardi Matrix.
CBRE Director Peter Greisinger arranged the financing, while Vice Chairman Pat Arangio, First Vice President Jack Stillwagon and Vice Chairman Doug Middleton advised Invesco. Wachtel Missry LLC represented the borrowers, while King & Spalding was the legal advisor to ACORE.
370 Lexington is 92 percent leased following a surge of leasing in 2025 that totaled 69,000 square feet of new leases. The leasing strategy focuses on attracting smaller and mid-sized tenants looking for upgraded office space with transportation access, the building’s owners said in prepared remarks.
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The building is one block from Grand Central Terminal, providing access to Metro-North, Grand Central Madison and multiple subway lines. Ownership has stated that it plans to invest an additional $10 million in leasing, tenant improvements and capital projects to further modernize the property.
The building was completed in 1927 and was designed by Art Deco architect William Van Alen, who later completed the iconic Chrysler Building. BSD owned the property from 2006 to 2008 before reacquiring it from Unizo Holdings in 2018.
Manhattan office continues to shine
Manhattan’s office market saw a strong start in the first quarter, according to a report from Colliers, with the strongest first-quarter leasing—nearly 11.8 million square feet—since 2014. Net absorption in the quarter was 2 million square feet and the average asking rent rose by 2 percent. The Grand Central submarket has an overall availability of 12.9 percent, on an inventory of 54 million square feet.
BXP is currently in the process of constructing a 46-story, 930,000-square-foot office tower at 343 Madison Ave. with direct access to Grand Central Madison. The building is expected to open in late 2029. In January, investment and insurance firm Starr signed a 275,000-square-foot, 20-year lease at the site. It will occupy nearly a third of the building across floors 16 through 27.
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