NEW YORK CITY—Savanna and its joint venture partner, the Silvermintz Family, have secured $115 million of first mortgage construction financing from Deutsche Bank. The loan will support the building of the partners' 166,525 square-foot development project at 540 W. 26th St., of which 51% has been pre-leased to Avenues: The World School.
RM Capital Management arranged the financing on behalf of the JV partnership. Co-managing directors Romano Tio and Marc Sznajderman along with director Steven Weiss executed the transaction.
Savanna and the Silvermintz Family will develop 540 W. 26th St. into a state-of-the-art, Class A building. The nine-story building will cater to office, gallery and community facility tenants and will feature generous ceiling heights, predominantly column free space, terraced setbacks and an expansive rooftop amenity, and floor to ceiling fenestration with views of the vibrant West Chelsea neighborhood.
The partnership pre-leased 85,421 square feet including the entire second through fifth floors as well as portions of the basement and ground floors to Avenues, an educational institution. The space will be used to meet the expansion needs of the educational program. Construction is anticipated to be complete in 2017.
“We are pleased to welcome Avenues to 540 W. 26th Street,” says Christopher Schlank, managing partner at Savanna. “Avenues is a world-class academic institution with an outstanding reputation which has become a valued partner serving the Chelsea community.”
The remainder of the property will essentially be a building within a building with dedicated elevators, entrances and rooftop amenities for office tenants while the ground floor gallery tenants will enjoy 20 foot ceiling heights with floor to ceiling storefronts and thoughtfully designed layouts.
Savanna and the Silvermintz Family will work with the leasing team of David Falk, Peter Shimkin, Daniel Levine and Nick Berger of Newmark Grubb Knight Frank to lease the office space. Jamison Weiner of Manhattes Group will head leasing efforts for the gallery.
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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.
