A Midtown Manhattan office tower that was in serious financial distress just two years ago has now secured a major refinancing and reached near-full occupancy—an important signal that parts of the office market are beginning to stabilize.
GFP Real Estate announced that it closed an $86.5 million, 10-year floating-rate refinancing from Apple Bank for 515 Madison Avenue, a 42-story, 350,000-square-foot tower in the Plaza District also known as the DuMont Building. As part of the transaction, GFP also bought out ATCO’s minority stake, becoming the building’s sole owner.
This loan replaces a legacy $120 million mortgage from 2012, which GFP had already paid down to $81 million, meaning the refinance was not a distressed fire sale—but a restructuring at a more realistic valuation and debt level.
Apple Bank emphasized the long-standing relationship with GFP, highlighting that the lender’s comfort came not just from the building, but from GFP’s track record as a long-term operator of New York office assets.
From Pandemic Trouble to 99% Leased
The turnaround is particularly notable because this building was in deep trouble after Covid:
- • Summer 2022: Vacancy hit 25%
- • January 2023: GFP defaulted on a $103M loan
- • March 2023: GFP negotiated a three-year loan extension and signed 32,000 SF of new leases
Fast-forward to today:
Occupancy is now 99%, according to GFP Chair Jeffrey Gural.
This is not just luck—it reflects an aggressive leasing and repositioning strategy that many Manhattan landlords are being forced to adopt: competitive pricing, upgraded space, flexible terms, and active tenant engagement.
Why 515 Madison Was Able to Recover
Several factors explain why this building rebounded while many others have not:
1. Prime Location Still Matters
515 Madison sits in the Plaza District, one of Manhattan’s most prestigious office corridors near:
- • Central Park
- • Fifth Avenue retail
- • Grand Central
Even in a remote-work world, top-tier locations continue to attract tenants, while commodity office buildings struggle.
2. Historic + Trophy Appeal
The building dates to 1932 and has architectural and cultural significance—it once hosted an early television broadcasting station in 1938. These “trophy-lite” buildings have emotional and branding value that modern glass boxes often lack.
3. Rents That Still Work
Estimated rents of $56–$68 per square foot place the building below ultra-luxury towers but above struggling B-class stock—right in the sweet spot for hedge funds, medical users, and boutique firms.
Current tenants include:
- • Longacre Asset Management
- • Encore Physical Therapy
- • GFP Real Estate
What This Deal Really Tells the Market
This refinance is not just about one building—it reflects how Manhattan office recovery is actually happening:
Not all offices are rebounding. But well-located, well-managed assets are.
Lenders like Apple Bank are willing to refinance:
- • Buildings that have stabilized occupancy
- • Owners who are willing to inject capital, reduce leverage, and actively manage
- • Assets in prime submarkets
By contrast, poorly located or obsolete office buildings are still facing write-downs, forced sales, or conversion to residential.
Bigger Picture for NYC Commercial Real Estate
GFP’s success here aligns with a broader shift:
- • Class A and boutique office buildings are quietly refilling
- • Secondary and outdated towers are being sold at deep discounts or converted
- • Capital is flowing back selectively, not broadly
At the same time, GFP is also hedging its bets—working with partners to convert the Flatiron Building into residential condos, showing how even major office landlords are diversifying beyond pure office exposure.
Once-struggling Manhattan office tower inks $86.5M refinancing →
