Savanna buys 31 Penn Plaza in NYC

Savanna has acquired 31 Penn Plaza in New York City, according to an announcement by the New York-based real estate investment and fund manager. Although the firm would not disclose the purchase price, sources familiar to the situation said a deal was struck at nearly $133.2 million.

31 Penn Plaza is a 444,000-square-foot multi-tenant office building located at 132 West 31st Street, near Madison Square Garden and Penn Station in Manhattan. Data provider Real Capital Analytics lists a joint venture between Zamir Equities and C&K Properties as the seller. The building is 98 percent leased. 

Following the purchase, Savanna is planning a $26 million refurbishment programme for the 18-storey building. Planned renovations for the property include a new front entrance, refurbished lobby, modernised elevators and the continuation of ongoing building upgrades and maintenance. 

Christopher Schlank, co-founding managing partner of Savanna, said in a statement: “The neighbourhood surrounding Penn Station and Madison Square Garden is a growing mixed-use submarket with plans for millions of square feet in office, retail, residential and hotel development over the next few years.” 

Savanna’s latest deal follows an announcement in May that saw the firm take possession of another office property in New York, located at 100 Wall Street in Manhattan’s Financial District. The firm took control of the 504,000-square-foot office building after acquiring a $62.5 million mezzanine loan secured by the property for $7.5 million.

Separately, in April, the firm closed its second commingled fund on $550 million in commitments, exceeding its original target of $400 million. Savanna Real Estate Fund II, which raised commitments from a mix of US and international investors, concentrates on office properties in such cities as Boston, New York and Washington DC.