(Save the date: RealShare New York comes to the Grand Hyatt, New York, NY, October 9.)
NEW YORK CITY-Marking its first move into the SoHo market, Savanna has acquired the retail space at the base of the at the Jean Novel-designed 40 Mercer St. for $57 million, the company unveiled in a statement on Monday afternoon. The retail – located at 465 Broadway -- consists of 9,400 square feet of at-grade space and 4,700 square feet of below-grade space at the luxury condominium, which was developed in 2007 by Hines, Goldman Sachs and Andre Balazs.
The company acquired the retail condominium from GLL Real Estate Partners, and the deal was financed with a $42 million acquisition loan from Mesa West Capital and equity from Savanna Real Estate Fund II.
Bastien Broda, an associate at Savanna, says the firm moved forward with the buy because the company liked the property’s “modern” configuration, describing it as a quality that set the asset apart from older product in the marketplace. “SoHo is primarily recognized for its cast iron buildings that have been converted from industrial use to office, residential and retail,” he says, in a statement. “The new glass and steel property offers at-grade access, 17-foot high ceilings and wide column spacing that is ideal for retail tenants.”
The property has 75 feet of frontage on Broadway, 180 feet of frontage on Grand Street and 45 feet of frontage on Mercer Street. Its street level space is currently 100% leased to Bose, Wells Fargo, Dermalogica and Vivienne Tam, and the firm plans to roll the below market leases as they expire.
An active player in the Manhattan acquisition market, Savanna also acquired the 72,000-square-foot Jewelry Building at 576 Fifth Avenue after resolving a troubled financial situation. With this buy, the company now has 11 Manhattan buildings in its portfolio, joining other properties such as 15 E. 26th St., 104 W. 40th St., 100 Wall St. and 31 Penn Plaza.
Woody Heller, Will Silverman and Eric Negrin of Studley were the sole brokers on the transaction.
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