NEW YORK CITY—Savanna has secured a $140.5 million loan to refinance 31 Penn Plaza. Morgan Stanley provided the floating-rate financing for the 444,132-square-foot office tower, which sits on 31st street between Sixth and Seventh avenues.
A Jones Lang LaSalle capital markets team, led by managing director Kelly Gaines and VP Aaron Niedermayer, handled the refi on behalf of Savanna. The move follows a successful leasing effort by vice chairmen Mitchell Konsker and Matthew Astrachan, along with associate Matt Polhemus.
“The proximity to multiple sources of transportation, along with Savanna's extensive repositioning of the building and JLL's leasing campaign that brought 31 Penn Plaza to near full occupancy created significant value in the asset,” says Gaines. “We advised Savanna to defease the existing CMBS loan and refinance with floating rate debt in order to take advantage of historically low interest rates and gain flexibility in the loan structure.”
Adds Konsker, “Tenants are increasingly ready to explore new and creative submarkets and Penn Plaza's fundamentals are in line to deliver significant rent growth for landlords and investors.”
Since 2011, JLL's agency leasing team has leased more than 225,000 square feet of office space at 31 Penn Plaza. The office building is located less than one block away from Penn Station, in the midst of the Penn Plaza submarket. The building features a newly renovated lobby and security system as well as ground floor retail space.
“After identifying the leasing shift toward new, state-of-the-art Midtown West office product, JLL executed a very strong leasing campaign and secured creative financing that will enhance the property's value and provide us with options looking forward,” adds Nick Bienstock, managing partner, Savanna.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
