Square Mile Capital Management has provided a $430m (€391.6m) construction loan for the redevelopment of a 970,000sqft office building in a New York City borough.

GFP Real Estate and Northwind Group said Square Mile provided the equity and debt financing for the redevelopment of 100 Pearl Street-50 Water Street asset in Manhattan.

The capital markets team at Cushman & Wakefield arranged the financing for the project formerly known as 7 Hanover Square.

GFP said 526,552sqft of the 50 Water Street portion of the building has been leased to New York City Health + Hospitals.

Brian Steinwurtzel, co-CEO of GFP Real Estate, said: “We have always believed in the re-emergence of Downtown as a place where leading tenants want to be.

“We are thrilled to commence construction next week and add 100 Pearl Street to GFP’s growing portfolio.”

Sean Reimer, Square Mile Capital principal, said: “The 100 Pearl Street redevelopment has all the hallmarks of an outstanding project.

“It is strategically well located in a very desirable submarket of Manhattan, with extremely strong sponsorship and an anchor tenant already committed. We are very pleased to provide the financing.”