NEW YORK CITY-Private equity and real estate management firm Savanna has acquired 80 Broad St., after buying the senior debt on the building earlier this year. It also secured a $65.3 million loan, to be used to finance the acquisition and for a $23 million capital improvement program.
Shep Wainwright, a managing director at Savanna, tells GlobeSt.com that, for now, the building is off the leasing market while the improvements are implemented. “Savanna has decided to take the building off the market while it completes the already commenced capital improvement program,” he says, “to make a strong statement that we’re dedicated to this asset and to providing reliable and comprehensive services to our customers.”
The building, he adds, will be reintroduced in the first quarter of 2012 “with asking rents in line with the market for similar quality buildings in downtown Manhattan.”
Swig Equities will continue to manage the building. It named Newmark Knight Frank as the leasing agent early last month and the team there charged with marketing and leasing for the reintroduction in 2012 consists of Hal Stein, Adam Leshowitz and Todd Stracci. Todd Korren, principal and director of leasing at Savanna will also participate in the leasing efforts.
The capital improvements include elevator modernization, stone restoration, enhanced lobby lighting and renovations to common area bathrooms. A prebuilt program is also underway, with three new office suites being constructed on the 25th floor. With the completion of the capital improvement program, about 125,000 square feet of office space will become available.
As for the current group of tenants in the building, Korren says it “has a diverse roster of tenants in a variety of industries, including finance, legal, professional services, not-for-profit and communications.”
“Savanna continues to add high quality Manhattan office buildings to its portfolio and we are delighted to continue working with them on these transactions,” Raphael Fishbach, a principal at Mesa West’s New York City office, said in a prepared statement about the $65.3 million, which it provided. “By working with Savanna through their purchase of the debt, and subsequent acquisition of title, the 80 Broad St. loan is another example of our commitment to working with our clients to create flexible financing options tailored to each unique transaction.”
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