Metro Loft Management LLC is under contract to buy the headquarters of American International Group Inc. in Manhattan, N.Y.'s Financial District for $270 million, The Real Deal reported, citing unnamed sources.

Vanbarton Group LLC is taking an up to $75 million preferred equity stake in the deal, while Blackstone Group Inc. is providing a $175 million senior mortgage, the publication added.

The insurance company was reported in May to have selected Eastdil to list the 684,000-square-foot property at 175 Water St. for a roughly $275 million sale.

Metro Loft plans to redevelop the top half of the building into residential spaces after the expiration of AIG's lease in 2021. AIG will relocate to the former Time-Life Building in Midtown Manhattan.

Metro Loft founder Nathan Berman confirmed the agreement, while an AIG spokesperson and representatives for Vanbarton and Blackstone declined to comment, according to the publication.