Broad Street and KSR refinance 370 Lexington for $138M

Broad Street Development and KSR Capital completed a $138 million recapitalization of 370 Lexington Avenue in Manhattan’s Grand Central submarket, including a $110 million senior loan from ACORE Capital. The deal pays off Invesco and sets up an additional $10 million in planned investment as the 317,000-square-foot tower pushes toward stabilization.

Why it matters: - The financing reinforces lender and investor support for a recently modernized office tower in one of Manhattan’s most connected submarkets. - The recapitalization gives Broad Street Development and KSR Capital room to keep leasing, upgrading and stabilizing the property. - The building’s performance matters because the Grand Central office market has been under pressure, and the asset is showing renewed demand.

What happened: - Broad Street Development and KSR Capital announced the refinancing and recapitalization of 370 Lexington Avenue in Manhattan. - The transaction totaled $138 million and paid off lender Invesco. - ACORE Capital provided a $110 million senior loan tied to the recapitalization. - CBRE’s Peter Greisinger arranged the financing. - CBRE’s Pat Arangio, Jack Stillwagon and Doug Middleton advised Invesco. - Eli Dweck and his team at Wachtel Missry LLC represented the borrowers. - King & Spalding represented ACORE Capital.

The details: - 370 Lexington Avenue is a 317,000-square-foot office tower in Manhattan’s Grand Central submarket. - The building was originally built in 1927 and designed by Art Deco architect William Van Alen. - Broad Street Development owned the property from 2006 to 2008 and reacquired it in 2018. - Since 2018, Broad Street Development has focused on capital improvements, leasing, tenant retention and operational enhancements. - The property is currently 92% leased. - The tower sits one block from Grand Central Terminal and has access to Metro-North, Grand Central Madison, multiple subway lines and the broader regional transit network. - Ownership plans to invest an additional $10 million in leasing, tenant improvements and capital projects. - The property has been attracting tenants at rental rates in the low-to-mid $60 per square foot range. - In 2025, the building signed leases for more than 28% of its total square footage. - Broad Street Development completed about 69,000 square feet of new leases and 25,000 square feet of renewals in 2025. - In the last six months of 2026, the building recorded more than 40,000 square feet of leasing activity. - That leasing pushed occupancy from 82% to 92%. - The building has minimal remaining vacancy and is positioned for near-term stabilization. - Tenants include Sircle Media and Coral Care.

Between the lines: - The recapitalization signals that a well-located, transit-rich office asset can still attract capital when leasing momentum and occupancy improve. - The transaction also suggests that smaller and mid-sized tenants remain a key source of demand for upgraded Manhattan office space. - Broad Street Development’s long holding period and repeat ownership point to a strategy built around repositioning rather than quick turnover.

What's next: - Broad Street Development and KSR Capital plan to deploy the additional $10 million into the building. - The next phase centers on leasing, tenant improvements and capital projects aimed at further modernization and stabilization. - Continued leasing will determine how quickly the property reaches full stabilization.

The bottom line: - 370 Lexington Avenue has moved from repositioning to recapitalization, with stronger leasing and fresh debt support setting up the next stage of value creation.