NEW YORK CITY—Real estate developer Savanna reports it has closed on a construction-financing package totaling approximately $100 million on its planned 26-story Midtown office building at 106 W. 56th St.
New York City-based Savanna and joint venture partner Atom Assets expect to commence vertical construction of 106 W. 56th St. in early 2018, with completion scheduled for the third quarter of 2019. Atom Assets is a real estate investment platform designed for Asian family offices and high net worth individuals.
The financing package, which was arranged by Kellogg Gaines, Aaron Niedermayer and Douglas Baillie of JLL, consists of a senior construction loan from United Overseas Bank and mezzanine financing from Canyon Partners Real Estate. The law firm Cole Schotz P.C. advised Savanna in the financing of the property.
The deal marks the first transaction between Canyon and Savanna. Canyon has committed $637 million in 21 investments through senior loans, mezzanine loans, preferred equity and common equity since 2005 in New York City.
The planned 26-story luxury boutique office building is situated just west of Sixth Avenue and is located three blocks from Central Park. Savanna states the Class A property will feature club-like amenities that are geared to cater to private investment funds, wealth managers, and family offices. Designed by architect Perkins Eastman, with interiors by Gensler, 106 West 56th St. will total approximately 90,000 square feet and will offer a tiered glass façade punctuated by landscaped terraces. Floor plates will range from 2,500 to 5,000 square feet.
“106 West 56th Street will offer a luxury office ambience that is truly unique in the market, and distinct from traditional Class A product in Midtown,” says Andrew Kurd, Director at Savanna. “There is a void in amenity-rich properties that provide appropriate office settings for the highest end tenants. We believe that 106 West 56th St. will surpass the market’s expectations of what an office building can be.”
Savanna has hired CBRE’s Peter Turchin and Christie Harle to lead the leasing campaign for the property.