The wheels are in motion for another office-to-residential conversion in New York City, one even the new pope may take an interest in.
The Vanbarton Group closed its high-profile acquisition of the Catholic Church’s former Manhattan headquarters at 1011 First Avenue, PincusCo reported. The developer paid $103 million to the Archdiocese of New York for the office building in Sutton Place, according to court records filed last week.
The acquisition was first reported in the fall when the contract was signed. It represents another major office-to-residential conversion for the prolific developer, led by Gary Tischler and Richard Coles.Â
This one has a slight twist: Court documents revealed that Vanbarton is partnering with Edmond M. Safra and Adnane Mousannif’s AVRS Partners on the project.
Vanbarton and AVRS both did not respond to a request for comment from The Real Deal.
The partnership plans to convert the 20-story building into a 26-story, 420-unit residential complex under New York State’s 485x tax incentive program. As a result, at least 25 percent of the units will be designated as affordable housing.
The Catholic diocese announced last year it was vacating its longtime Sutton Place headquarters after leasing 142,000 square feet from the Feil Organization at 488 Madison Avenue.
The acquisition continues Vanbarton’s aggressive expansion into office-to-residential conversions across Manhattan. The firm agreed to purchase 77 Water Street in the Financial District for $95 million, planning to convert the 542,000-square-foot property into as many as 600 rental units.
Vanbarton also launched sales at Pearl House at 160 Water Street, a 588-unit conversion featuring amenities like a bowling alley and hyperbaric oxygen therapy chamber, where studio rents started at $3,500. Previous projects include the 570-unit conversion at 180 Water Street in 2017 and the 300-unit Hollingsworth at 70 West 37th Street in Midtown.
The developer is in contract to buy 6 East 43rd Street from the Milstein family’s Emigrant Savings Bank for about $140 million, sources told The Real Deal last week. It plans to convert the 400,000-square-foot building into between 450 and 500 rental apartments.
The deal for 6 East 43rd Street is expected to close in the fall.
— Holden Walter-Warner
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