521 Fifth Ave.
NEW YORK CITY—Savanna has acquired 521 Fifth Ave. from SL Green Realty Corp. and Plaza Global, a venture between Quantum Global Real Estate and LaSalle Investment Management, for $381 million. The 498,711-square-foot office and retail building is located at the intersection of Fifth Ave. and 43rd St.
The buyer, a New York City-based real estate investment firm, is also planning substantial capital improvements followed by a strategic leasing campaign. Referred to as the Lefcourt National Building, the 39-story, mixed-use tower was built in 1929.
“521 Fifth Ave.'s location a block from Grand Central makes it a perfect fit for our growing Midtown office portfolio,” says Andrew Fichte, managing director of Savanna. “After we make a few select cosmetic improvements, including a lobby renovation, we believe this property will be well-positioned for a successful leasing campaign.”
CBRE's Bill Shanahan, Darcy Stacom, David Fowler and Doug Middleton represented the sellers in the transaction. James Million, Ethan Gottlieb and Tom Traynor at CBRE arranged the financing for the acquisition. Laurie Grasso, Susan Saslow, Douglas Hoffmann and Michal Baum at Hunton Andrews Kurth represented the buyer Savanna as legal counsel in the transaction. Savanna has also retained a CBRE team led by Peter Turchin and David Hollander as the exclusive leasing agent.
The Midtown East skyscraper has flexible floor plates from 22,000 square feet at the base to 6,580 square feet in the tower. With windows on three sides, the building benefits from natural light and is LEED Gold Certified and Energy Star rated.
Savanna plans to complete the entrance and lobby renovation, add new signage, upgrade systems, work on common corridors and engage in selective redesigns in the building.
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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.
