Vanbarton Group signs $165M construction loan with TYKO Capital for FiDi conversion

Vanbarton Group through the entity 77 Water LLC as borrower signed a rehab construction loan with lender TYKO Capital through the entity Water Street Debt Lender LLC valued at $165 million for the office building (O4) at 77 Water Street in Financial District, Manhattan.
The deal closed on December 4, 2024 and was recorded on December 19, 2024. The prior lender was ACORE Capital which held debt that had an original loan amount of $121.1 million.The property has 541,568 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $304 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on December 4, 2024, for $95.5 million. The signatory for Vanbarton Group was Damiano Buffa. The signatory for TYKO Capital was Adi Chugh. The debt is composed of a $79 million land loan and an $86 million building loan.

Prior sales and revenue

The 541,568-square-foot property generated revenue of $28.9 million or $53 per square foot, according to the most recent income and expense figures.

The property

The office building in Financial District has 541,568 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 214 feet and is 121 feet deep with a total lot size of 25,779 square feet. The lot is irregular. The zoning is C6-9 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $141.6 million. The most recent loan totaled $121.1 million and was provided by ACORE Capital on July 26, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $3,950 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, M00958958, for a one square-foot COM building. The project was submitted by Peter Lauth with plans filed December 8, 2023 and permitted February 20, 2024.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 13.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 1,015,028 square feet of the 1,015,028 square feet. The two identified owners are Vanbarton Group and Udr, Inc..
There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 1 million square feet of built space are office buildings, with elevator buildings next occupying 47 percent of the space.

The borrower

The PincusCo database currently indicates that Vanbarton Group owned at least 18 commercial properties with 1,112 residential units in New York City with 2,767,696 square feet and a city-determined market value of $937 million. (Market value is typically about 50% of actual value.) The portfolio has $1.3 billion in debt, with top three lenders as Blackstone Group, Blackstone Mortgage Trust, and Northwestern Mutual Life Insurance respectively. Within the portfolio, the bulk, or 74 percent of the 2,767,696 square feet of built space are office properties, with elevator properties next occupying 14 percent of the space. The bulk, or 93 percent of the built space, is in Manhattan, with Bronx next at 7 percent of the space.

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