Vanbarton Group to Close $1B Fund for Investments in Gateway Cities


Real estate investment and advisory firm Vanbarton Group is nearing the close for a fund in excess of $1 billion, sources have informed Commercial Observer.

The fund will be used to finance the acquisitions of commercial properties in core cities including New York and San Francisco in 2016 and 2017, sources said under the condition of anonymity. Vanbarton may use the new fund to fuel its entry into the Miami, Chicago, Los Angeles, Seattle, Boston and Washington, D.C. markets.

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Gary Tischler and Richard Coles, formerly with Emmes Asset Management, launched Vanbarton, formerly, in July 2015. The firm, which has offices in New York and San Francisco, manages funds which invest in centrally located and value-add real estate and secondary market debt acquisitions. Vanbarton also originates preferred equity and bridge loans.

The month the company launched, Vanbarton, in partnership with Metro Loft Management, received $240 million in financing from Capital One (COF) and Brookfield Real Estate Finance Fund IV to complete an office-to-residential conversion at 180 Water Street in the Financial District.

The following month, the firm purchased the leasehold on 31 Penn Plaza in Midtown from Savanna for $265 millionmore than double what Savanna paid for it in 2011. In October, Vanbarton scooped up Riverdale Crossing in the Bronx for $133 million from Metropolitan Realty Associates.

A representative for Vanbarton declined to comment.