Savanna has taken possession of a 29-story, Class A office building in Manhattan’s Financial District after acquiring a $62.5 million mezzanine loan secured by the property.
According to a source close to the deal, an affiliate of Prudential purchased the mezzanine loan, which was in default, and sold it to Savanna for $7.5 million. The New York-based real estate private equity firm then acquired the 504,000-square-foot building, located at 100 Wall Street, through foreclosure. Savanna also assumed responsibility for the property’s $117 million senior loan.
The property previously was owned by Broadway Partners, which purchased the building in 2007 for approximately $200 million. The New York-based real estate investment management firm, which aggressively purchased $14 billion worth of office buildings from 2002 to 2007 using substantial leverage, ran into financial troubles in the wake of the global credit crunch and has been shedding certain assets and recapitalizing others ever since.
Now that it has taken title to the building, Savanna plans to immediately initiate a capital improvement plan. To do so, it has hired Mitchell Konsker, Scott Cahaly and Brian Reiver of Jones Lang LaSalle to head its marketing and leasing program at the property. Savanna did not comment further on details of the investment plan.
The property at 100 Wall Street currently is 77 percent leased. Spaces at the property range from 1,900-square-foot office suites to a contiguous block of 37,800 square feet, offering opportunities for both full-floor tenants and multi-tenant floors. Current tenants include the law firm of Harris Beach, the Bank of Taiwan and the New York Stock Exchange.