NEW YORK CITY-Making yet another play in the Lower Manhattan office market, private equity and asset management firm Savanna has acquired a controlling interest in 2 Rector Street in partnership with Stellar Management, according to a joint statement from the two companies.
Data from Real Capital Analytics shows that Savanna initially acquired part of the $100 million first mortgage at a discount in 2007. In 2010 Savanna worked with Stellar to recapitalize the property, providing a $10 million mezzanine loan on the asset. Savanna recently worked with Stellar to buy out Stellar’s partners, including Lehman Brothers, acquiring a controlling stake in the property.
The property is a 464,000-square-foot, 26-story multi-tenant office building located adjacent to the World Trade Center development, with frontage occupying the full block on Rector Street between Greenwich Street and Trinity Place. Tenants here include the New York City Department of Transportation, Merrill Lynch and Studio Daniel Liebskind LLC.
According to the Savanna website, the company states: "Even in the current environment, many of the in place leases remain at below-market levels, and Savanna's loan basis is below the property's market value and replacement cost." However, a spokesperson for Savanna and Stellar did not return a request for additional comment.
Savanna -- an active player in the Manhattan acquisition market -- 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 more than 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.
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