Vanbarton’s $1B gateway cities fund closing in on big Seattle buy

Midtown-based firm in contract to buy PitchBook-anchored office building for $300M

May.May 01, 2019 04:30 PM
901 Fifth Avenue in Downtown Seattle and Vanbarton Group's Richard Coles and Gary Tischler (Credit: Wikipedia)

901 Fifth Avenue in Downtown Seattle and Vanbarton Group’s Richard Coles and Gary Tischler (Credit: Wikipedia)

Vanbarton Group is getting ready to make its first Seattle purchase out if its $1 billion gateway cities fund.

The Midtown-based real estate private equity firm is in contract to buy the 41-story 901 Fifth Avenue in Downtown Seattle for $305 million, sources familiar with the transaction told The Real Deal.

That price works out to a little more than $560 per square foot for the 1970s era office tower.

The sellers are Seattle-based real estate investment firm Schnitzer West and the Middle Eastern global asset manager Investcorp, which is headquartered in Bahrain.

Spokespeople for Schnitzer West and Investcorp declined to comment, while representatives for Vanbarton did not respond to requests for comment.

A team at HFF marketed the property for the sellers, who reportedly paid $223 million to buy the roughly 540,000-square-foot tower in 2016.

The largest tenant in the building is the financial research firm PitchBook Data.

The purchase will be Vanbarton’s first Seattle acquisition for the $1 billion core fund it closed in 2016 to buy properties in New York and San Francisco, as well as break into markets such as Miami, Chicago, Los Angeles, Boston and Washington, D.C.

A source close to the deal said Vanbarton – which founders Richard Coles and Gary Tischler launched in 2015 – could hold 901 5th Avenue for a short term or long term.

In New York, Vanbarton paid $701 million last year to buy the 780,000-square-foot office tower at 425 Lexington Avenue, one of the priciest investment sales of 2018.

Related Articles

US Steel’s sprawling South Works site is about the size of Downtown Chicago. At left, Common, who wants to partner with developers on a mixed-use entertainment district there, and Dan McCaffery, whose vision for a 13,000-home community fizzled out. (Credit: Common by Paras Griffin/Getty Images; McCaffery via McCaffery Interests; aerial by Cushman & Wakefield)

South Works, the 415-acre “magnificent property,” is Chicago’s biggest development opportunity

Sharif El-Gamal (Photo by Desiree Navarro/WireImage)

WATCH: Developer Sharif El-Gamal has Covid-19. But he’s one of the lucky ones

Knotel CEO Amol Sarva 

Another huge round of layoffs for Knotel

Miki Naftali, Steven Witkoff and Ryan Freedman

TRD Talks: How developers are contending with coronavirus

Governor Andrew Cuomo (Photo by Spencer Platt/Getty Images; iStock)

Cuomo’s foreclosure, mortgage moratorium has no teeth

Rodrigo Niño, 17 John Street and 85 West Broadway (Credit: Prodigy Network, Google Maps)

Crowdfunding firm seeks $30M bailout for second commercial building

From left: Realogy's Ryan Schneider, Cushman & Wakefield's Brett White and Newmark Knight Frank's Barry Gosin (Credit: iStock)

Brokerage stocks plunge amid market turmoil

Mayor Bill de Blasio halted ULURP, stalling projects like 960 Franklin Avenue, Rikers Island and Industry City 

These projects could be held up by New York’s rezoning freeze