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.�