6 East 43rd Street
Manhattan's Largest Office-to-Residential Conversion
$140M
Transaction Value
400,000 SF
Building Size
2025
Year Closed
Overview
This landmark transaction represents one of the most significant office-to-residential conversions in Manhattan history. Skyline Properties identified Vanbarton Group as the ideal buyer for this 27-story Midtown tower and structured a deal that maximizes value through the 467-m tax abatement program.
The Challenge
The property owner, Emigrant Savings Bank (Milstein Properties), needed to exit a large obsolete Class B office building in a challenging market environment. Traditional office tenants were not materializing, and the building required significant capital investment to remain competitive.
Our Solution
Skyline Properties identified the conversion opportunity and connected the seller with Vanbarton Group, a developer with deep expertise in office-to-residential conversions. We structured the transaction to leverage the 467-m tax abatement program, which provides significant property tax benefits for creating affordable housing units.
The Result
The deal closed at $140 million, with Brookfield providing $300 million in construction financing. The building will be converted to 441 rental apartments, including 111 affordable units. This represents a win-win outcome: the seller achieved an exit at fair value, and the buyer secured a premier conversion opportunity with favorable tax treatment.
Key Takeaways
- Largest office-to-residential conversion in recent Manhattan history
- 467-m tax abatement provides significant property tax benefits
- Off-market sourcing delivered buyer ahead of public marketing
- Partnership with institutional financing (Brookfield) enabled execution
Deal Metrics
Transaction Parties
Buyer
Vanbarton Group
Seller
Emigrant Savings Bank (Milstein Properties)
Financing
$300M construction loan from Brookfield
