NEW YORK CITY—Westbrook Partners has acquired the 1375 Broadway office tower here from real estate private equity firm Savanna for $310 million.
Savanna acquired the property in 2010 for $135 million and undertook an extensive repositioning of the property that included a redesign of the lobby and entrance and a renovation of the façade, roof and retail storefronts. Savanna leased more than 190,000 square feet during its ownership of the 510,000-square-foot office building located on the northwest corner of 37th Street and Broadway. Rents have increased at the building from $22-per-square-foot at acquisition to the low $60s per-square-foot today.
In June 2013 it secured $145 million in refinancing funding from Mesa West Capital on the Garment District building.
“Savanna has transformed 1375 Broadway into a standout office property in the Broadway corridor through our intensive repositioning along with the Colliers and Winick leasing teams' hard work, which has paid off with a great roster of new office and retail tenants,” says Cooper Kramer, managing director at Savanna. “These tenants represent major growth industries in New York including technology, beauty and fashion. Westbrook is acquiring a high-quality asset in a great location.”
Adam Spies, Douglas Harmon, Joshua King and Adam Doneger of Eastdil Secured, as well as Woody Heller, Will Silverman and Eric Negrin of Savills Studley, advised Savanna in the sales deal. Spies, Harmon, King and Doneger also represented Westbrook in the transaction.
Earlier this month, Forest Electric, an electrical construction and telecommunications services supplier, signed a lease at 1375 Broadway The firm, a subsidiary of EMCOR Group, will occupy the entire seventh floor at the building, totaling 22,205 square feet. Ted Rotante of Colliers International represented the tenant in the transaction.
Previously, Savanna secured lease deals with TD Bank, which leased the corner retail space, Smartling, Inc., a cloud-based enterprise translation management company; tarte cosmetics and The Meltwater Group, a digital intelligence and marketing solutions provider, at 1375 Broadway.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
