Savanna sells NY office building for $275m

The New York-based private equity real estate firm has sold the asset for more than double the price that it paid four years ago.

Savanna has sold 100 Wall Street, a 29-story Class A office building in Manhattan’s Financial District, to Cornerstone Real Estate Advisors. Terms of the transaction were not disclosed, but according to data provider Real Capital Analytics, the property traded for $275 million.

Savanna acquired the 520,000-square-foot glass and steel property in May 2011 for $130 million, less than half of its recent selling price, according to RCA. The firm completed $25 million of capital improvements, including a successful prebuilt program and additional resiliency improvements following Hurricane Sandy in 2012, during its ownership of the building. In the past two years, Savanna leased more than 355,000 square feet of space, increasing the building’s occupancy from 78 percent shortly after acquisition to 97 percent today.

“We are proud of the transformational change we achieved at 100 Wall Street,” said Kevin Hoo, managing director at Savanna, in a statement. “The incremental capital investment has significantly added to the property’s future resiliency and repositioned it as a premier destination for a wide range of global, institutional quality tenants.”

Hoo added: “Lower Manhattan has experienced a tremendous amount of growth over the past few years and is entering an exciting phase of its renaissance. 100 Wall Street will be a direct beneficiary of this growth.”

Tenants at 100 Wall Street include Lester Schwab Katz and Dwyer, a litigation law firm that occupy two entire floors; Loeb Holding Corporation, a privately held investment and merchant banking firm; Crenshaw Associates, an executive search firm; and PCubed, a global management consulting firm.