Savanna acquires another Penn Plaza building

The New York-based real estate investment manager has formed a joint venture with the Feil Organization to acquire 21 Penn Plaza for $130 million.

In the wake of purchasing 31 Penn Plaza in New York City, Savanna has acquired 21 Penn Plaza through a joint venture, according to an announcement by the New York-based real estate investment manager. The firm has purchased the 375,000-square-foot office building at 360 West 31st Street in partnership with New York-based development firm The Feil Organization. Data provider Real Capital Analytics lists the closing price as $130 million.

A joint venture led by GHG Realty, which had owned 21 Penn Plaza since the mid-1980s, sold the 17-story property. In addition to investing in new pre-built units as well as upgrading common corridors and bathrooms, the new owners also plan to implement base building improvements, including elevator modernisations, over the next few years. Savanna and The Feil Organization will hold a 75 percent and 25 percent ownership stake, respectively.

Christopher Schlank, a managing partner of Savanna, said in a statement: “21 Penn Plaza is a destination office building that is home to major corporate tenants including Saks & Co. and Central Parking.” He noted that the property currently is 95 percent occupied.

The acquisition comes immediately on the heels of Savanna announcing that is had acquired 31 Penn Plaza for nearly $133.2 million from a joint venture between Zamir Equities and C&K Properties. That property is a 444,000-square-foot multi-tenant office building located at 132 West 31st Street and is 98 percent leased.