Vanbarton Group has received $280 million to refinance a Midtown South building, 980 Sixth Avenue, that recently went under redevelopment to fit in more apartments.
Invesco provided the loan, according to a report from The Real Deal. The new debt replaces the $273 million that was provided by Blackstone’s mortgage trust.
Vanbarton's ownership of the property dates back to 2018, when it acquired the 455-unit apartment building for $316 million. Previously, WeWork occupied office space at 980 Sixth, with 320 apartments sitting on the highest three floors. But the coworking space provider went bankrupt in 2023 and was forced to close 70 locations, including 980 Sixth, according to The Real Deal. Vanbarton, as a result, converted WeWork's space into apartments.
Some amenities at 980 Sixth include a gym, media room, bike room and package room. The units feature washer and dryers, outdoor space and dishwashers.
Vanbarton has been active with office-to-residential projects in NYC, with more than 2,000 units currently in its pipeline, according to The Real Deal. This includes 6 East 43rd Street, which it recently snagged a $300 million loan for to convert the 400,000 square foot building into 441 rentals. Also, Bloomberg reported on two acquisitions where Vanbarton is planning office-to-residential transformations: One is 77 Water St and the other is 1011 First Avenue. The latter of the two is looking at redeveloping the site into 600 apartments.
Meanwhile, NYC rents continue to surge, with the third quarter seeing a 5.4 percent rise to $3,599, according to a report from Realtor. Since 2019, rents have soared 20.2 percent.
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