By Edison Wu and Natalie Wong

February 4, 2026 at 3:43 PM EST

GFP Real Estate secured about $192 million of construction financing to convert 40 Exchange Place in New York’s Financial District into a residential building.

The Manhattan office property will be redeveloped into 382 apartments, including a mix of market-rate and affordable housing, according to an emailed statement. It will also have ground-floor retail space and tenant amenities.

A rendering of 40 Exchange Place. The Manhattan office property will be redeveloped into 382 apartments, including a mix of market-rate and affordable housing.Source: GFP Real Estate Built in 1893, the 20-story building sits on a site that once housed the New York Stock Exchange headquarters.

Derby Lane, an alternative investment manager founded by Adam Piekarski, previously co-head of the real estate credit business at BDT & MSD Partners, provided financing. A Newmark Group Inc. team including Jordan Roeschlaub and Chris Kramer arranged the loan.

“Office-to-residential conversions involve more than just capital — they require structuring expertise, flexibility and a deep understanding of how risk evolves throughout the repositioning process,” Piekarski said in an email.

Kramer, a vice chairman at Newmark, said in a phone interview that “there’s been a ton of interest from the lending community in these conversion plays.”

The project will be supported by federal and state historic rehabilitation tax credits, as well as a 35-year tax abatement, according to the statement.

“Lower Manhattan continues to demonstrate its long-term strength as a residential market,” GFP Co-Chief Executive Officer Brian Steinwurtzel said in an email. “This project builds on the momentum created by our recent conversions and reinforces the role adaptive reuse can play in transforming legacy office buildings into vibrant, mixed-income communities.”

GFP has undertaken office conversions across Manhattan, including 25 Water St., and it’s working on transforming 222 Broadway.

Read More: A Wave of New Apartment Buildings Is Set to Take Over Midtown Manhattan

It’s the latest in a wave of office-to-residential projects across Manhattan since the pandemic, driven by elevated office vacancy rates and a housing shortage. Roughly 3.9 million square feet (362,300 square meters) of Manhattan office properties have already been converted, with an additional 15.5 million square feet that have started or are in the planning stages, according to Newmark.