Savanna is paying $255 million to acquire a distressed Class A building called 799 Broadway in Lower Manhattan.
The investment manager in a statement said it was able to get the asset at a "deep discount" from owners Columbia Property Trust and Cannon Hill Capital Partners. After the 176,588-square-foot building was built in 2022, Blackstone Mortgage Trust provided $270 million to refinance it.
“This is a great outcome for our investors and delivers on our strategic priority to resolve impaired assets above our carrying values," a Blackstone spokesperson said.
Designed by Perkins&Will, 799 Broadway offers floor-to-ceiling glass throughout the building with abundant light. The ceiling heights are 15 inches, with private terraces on most floors in the 12-story property. Plus, 799 Broadway includes other amenities such as a fitness center, and a tenant lounge. Currently, the building is 71 percent leased, with tenants holding an average term of 11 years.
"The newly built property is ideally positioned in the heart of Greenwich Village neighborhood, allowing tenants to benefit from a great location with a vibrant culture as well as a modern office space that emphasizes wellness," Kerry Powers, managing director with Savanna, said in a statement.
"This building is also representative of the opportunities Savanna continues to pursue, acquiring some of the very best real estate in New York City at extraordinarily discounted prices given the current turbulence in the market. We look forward to leasing up both the retail and office space components of this state-of-the-art building that offers all of the post-Covid amenities needed to maintain a healthy daily working environment."
For office, New York is seeing one of the strongest recoveries in the nation. For August, Manhattan offices were found to be 73.4 percent as busy compared with the same month in 2019, according to a recent report from Avison Young. The national level, in comparison, is only at 60.4 percent of pre-pandemic levels.
Since 2006, Savanna has poured more than $6 billion through roughly 17 million square feet of property and is focused on NYC's five boroughs. Eastdil Secured represented Savanna and the sellers on the 799 Broadway deal.