Vanbarton Group Seeking $265M Acquisition and Construction Loan for 77 Water Street
Vanbarton Group purchased the office tower from Sage Realty this week and plans a residential conversion
By Brian Pascus September 27, 2024 12:27 pm
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Days after purchasing 77 Water Street, a 26-story office tower in Lower Manhattan, Vanbarton Group is seeking proposals for $265 million in acquisition and construction financing, Commercial Observer has learned.
CO reported earlier this week that Vanbarton Group purchased 77 Water Street from Sage Realty for $95 million and plans to convert the 54-year-old office tower into a 600-unit residential property.
With the sale expected to close by the end of the year, Vanbarton Group is now on the market with a financing request to pay for the redevelopment project.
CO viewed an offering memorandum, which seeks $265 million in floating-rate, interest-only construction and acquisition financing carrying a five-year term. The potential loan would represent 65 percent of total project costs, per the memorandum.
Gary Phillips and Ethan Pond of Eastdil Secured have been tapped to lead the financing mandate, while Will Silverman and Philips brokered sale of property. The Eastdil team has brokered office-to-resi conversions at 55 Broad Street and 80 Pine Street.
Built in 1970 by the William Kaufman Organization, 77 Water Street was renovated in 2008 and opened a new ground floor and “Oasis” amenity space earlier this year. The office building holds nearly 550,000 square feet of rentable space and has been the home of tenants such as Goldman Sachs, AT&T, and UnitedHealthcare.
After converting nearby 180 Water Street from office into residential, and 160 Water Street in the same manner, Vanbarton Group will now try the same formula at 77 Water Street. The offering memorandum includes several details about the upcoming conversion that include reserving 25 percent of units as affordable housing.
The new 77 Water Street would include 625 apartment units across 404,216 square feet, of which 468 would be market-rate and 157 would be affordable. The development’s new amenities for tenants would include a fitness center and spa, a sports simulator, a lap pool, an outdoor amenity space, and coworking spaces.
Construction is estimated to begin in the first quarter of 2025 and end by the second quarter of 2027.
Brian Pascus can be reached at bpascus@commercialobserver.com
