Vanbarton Group Lands $273M Loan for NYC Conversion
A Brookfield affiliate provided the funding for this Financial District project.
Vanbarton Group has secured construction financing for its Financial District project that converts a former office building into a market rate community. Cushman & Wakefield arranged the $272.5 million loan, which was provided by Brookfield Real Estate Financial Partners.
The loan will be used to convert 160 Water Street, a 24 story office building, into a 30 story community with 588 residential units. The commercial conversion process includes adding a mechanical floor and five new residential floors above the structure. The units will be built with wood flooring, quartz countertops, stainless steel appliances and in-unit laundries. Vanbarton Group is also planning to add 34,000 square feet of amenity space, including a lobby lounge, coffee bar, fitness center and rooftop deck.
Located in the Financial District, residents will be next to several restaurant, retail and entertainment options of lower Manhattan. The community is also a short walk from several of New York City parks, including The Oculus, The Battery and the East River Esplanade. Residents will also be within walking distance to Fulton Street station, which has several subway lines connecting to the rest of New York City.
Gideon Gil, who was part of the Cushman & Wakefield team that represented the borrower, said in prepared remarks that the Financial District is seeing a new wave of residential success due to the demand for rentals in lower Manhattan.
Commercial to residential
Vanbarton Group tapped CCM for the conversion. Since 1997, CCM has converted nearly 37 commercial properties totaling more than 8 million square feet into more than 7,600 residential units. Vanbarton and CCM started construction on the 160 Water Street conversion in December and are expected to complete the project in March 2024.
For Vanbarton Group, this project falls into the value add category of its investment strategy. The firm also has experience in other major cities, having secured a $115.5 million loan for a 265-unit community in Seattle.