Vanbarton Secures $280M Construction Loan From Tyko for 77 Water Street
By Isabelle Durso December 6, 2024 12:00 pm
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Vanbarton Group has secured a $280 million acquisition and construction loan from Tyko Capital for its planned office-to-residential conversion at 77 Water Street.
Gary Tischler’s Vanbarton, which agreed to purchase the 26-story Financial District office tower from Sage Realty in September for $95 million, had been seeking $265 million in financing, as Commercial Observer reported.
The sale of 77 Water Street closed Wednesday, allowing the landlord to move forward with its roughly 600-unit residential conversion with Tyko’s new financing, according to The Real Deal, which first reported the news.
Eastdil Secured’s Grant Frankel and Ethan Pond arranged the financing, while Eastdil’s Gary Philips negotiated the sale. Tyko CEO Adi Chugh and spokespeople for Vanbarton and Eastdil did not immediately respond to requests for comment.
The 1970-built office tower near the Wall Street ferry terminal at Pier 11 holds nearly 550,000 square feet of space and was renovated in 2008, CO reported.
Now, following its successful conversion projects at nearby 180 Water Street and 160 Water Street, Vanbarton is looking to turn 77 Water Street into 625 apartment units — 25 percent of which would be affordable, CO reported.
The project is also set to have amenities such as a fitness center and spa, outdoor space and coworking areas.
Construction on the project is expected to be complete by the second quarter of 2027, CO reported.
Isabelle Durso can be reached at idurso@commercialobserver.com.
