NEW YORK CITY-Savanna Real Estate Fund purchased the development site at 415 Eighth Ave. on the Southwest corner of 30th Street for $27.9 million from Tahari & Cohen. The sale of this vacant parking lot, which measures 50 feet by 137 feet, marks the beginning of the redevelopment of the area, according to a company statement.

The property sits across from The James Farley Post Office, Madison Square Garden and Penn Station. The Landmarked Farley Building is planned to be used as a new entrance and concourse for Penn Station.

Savanna Real Estate Fund is planning to build a 100,000-sf residential and retail building. According to a company statement, this recent acquisition reinforces Savanna's confidence in the area. The acquisition also marks the company's third major transaction in the neighborhood in the past six months.

When the new station opens, Amtrak and NJ Transit passengers will be able to board and exit trains from either The Farley Post Office or the previously existing part of Penn Station which will include a newly designed station over the existing site of Madison Square Garden. In additions, plans are being drawn up for a new version of Madison Square Garden in Farley's western Annex. The new Garden, which would share space within the Historic Farley Building, would replace the current Garden located a half-block away.

"This corner site has tremendous potential given the fact that many major real estate investors and developers are in the process of investing billions in the repositioning of the immediate area," notes Chris Schlank, a managing partner at Savanna. "We expect to deliver an extraordinary retail and residential rental project at a key location that will contribute to and benefit from the positive changes taking place in the neighborhood."

Adelaide Polsinelli, of The Platinum Team was the broker for the transaction. The purchaser was represented by Laurie Grasso at Herrick Feinstein. The seller was represented by Aaron Seligson of Seligson, Rothman & Rothman.