5 Bryant Park in Midtown Manhattan
NEW YORK—The New York real estate investment firm Savanna has purchased 5 Bryant Park from Equity Office, an affiliate of Blackstone with its joint venture with Swig Company, for approximately $640 million, according to Real Capital Analytics.
Savanna secured $463 million in financing from Deutsche Bank. Originally built in 1957, the 34-story, 682,988 square-foot office and retail property is located on Sixth Ave. between W. 40th and W. 41st streets, directly overlooking Bryant Park. The retail space spans 38,306 square feet.
Since 2007, the building has undergone $107 million in renovations. Savanna is planning another substantial capital improvement program, redesigning the lobby, entrance, and building signage. The company will also renovate bathrooms, corridors, terraces and windows throughout the building.
“Through our ownership of several buildings in the area, Savanna has witnessed the Bryant Park neighborhood transform into one of the most desirable office locations in New York,” says Cooper Kramer, managing director of Savanna. “The area is being targeted by virtually every type of industry.”
Real Capital Analytics recorded the American Association of Advertising Agencies, Game Show Network, HOK Architects, PlaceIQ and Seamless as building tenants. The property is 97% leased.
Kramer notes Bryant Park's open space and access to multiple transportation are factors bolstering the property's desirability. It has 100 feet of frontage directly facing the park. Savanna has retained CBRE's Paul Amrich, Neil King and Patrice Meagher as the leasing agents for 5 Bryant Park.
A joint team of JLL and HFF, led by Kellogg Gaines and Aaron Niedermayer at JLL, represented Savanna in financing the acquisition. Laurie Grasso at Hunton Andrews Kurth represented Savanna as legal counsel in the transaction.
“With in-place rents well below market, Savanna is poised to create significant value at 5 Bryant Park by rolling expiring leases to market,” says Niedermayer. “Ultimately, we secured a loan that enables Savanna to unlock the full value of the asset through extremely aggressive pricing, term, structure and prepayment flexibility.”
JLL Capital Markets recently has completed several other financings for Savanna. This includes closing a $100 million loan for construction of 106 W. 56th St. and arranging a $176 million financing package for the development of Vandewater, a condominium complex in Morningside Heights at 543 122nd St.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
