American Exchange Group is adding another office property to its portfolio. This time the fashion designer has acquired 1375 Broadway in Midtown South, Manhattan, and is being financed via a $200 million note from Sail Harbor Capital, which originally bought the note for the property in August, according to a report from the Commercial Observer.
The deal is allowing New York-based Savanna to continue to operate the 511,006-square-foot building and it's unclear if that will change in the future.
Savanna first acquired the office property in 2010 and sold it in 2015 before buying it again in 2020. The property manager has made renovations to the lobby, roof, facade, entrance, and retail segments of the asset during its ownership. According to the company, it is planning to upgrade the 26th-floor terrace.
While American Exchange is known for its brands including Aerosoles, and OrlandoPitaPlay — this isn't the first time it's getting into the real estate game. According to the Commercial Observer, it made two purchases in November — one for an office building at 292 Madison Avenue for roughly $90 million, and 1370 Broadway, which cost about $80 million.
Manhattan's office market has seen quite the demand, as of late. A fourth-quarter 2024 report from Savills found that the area leased 10.7 million square feet of office space, marking Manhattan's best total in five years. Midtown accounted for 77 percent of the leasing volume in the city.