Savanna Completes Sale of Manhattan’s 104 West 40th St. for Reported $100M
- Dec 18, 2012
By Keith Loria, Contributing Editor
Savanna, a New York-based real estate private equity and asset management firm, has completed the sale of 104 West 40th St., a 210,000-square-foot, 20-story Class A office building located next to Bryant Park in Midtown Manhattan, to Princeton International Properties.
Although the company wouldn’t release the sales price, reports around the web had the deal at a little over $100 million.
“Savanna continuously assesses the market conditions and the progress with our asset’s specific business plans,” Shep Wainwright, Savanna’s managing director, told Commercial Property Executive. “At 104 West 40th St., Savanna created significant additional value in the building through successfully leasing 90,000 square feet. That leasing brought the property’s occupancy to more than 70 percent from an initial occupancy at acquisition of 25 percent.”
The sale represents another significant return of capital to Savanna investors since its Savanna Real Estate Fund I, L.P. was established in 2006.
“Savanna purchases assets in major markets and creates value through a focused and thorough business plan suited to each specific asset,” Wainwright said. “Savanna undertook an extensive capital program to create an improved asset and managed a robust marketing campaign to lease a significant portion of the building during its ownership. The significant increase in value that Savanna created is demonstrated in this successful transaction.”
After acquiring the property in 2010, the company completed a $5 million capital improvement plan that included upgrades to the building HVAC system and the building envelope.
“Savanna installed a complete sprinkler infrastructure system, created significant efficiencies in the building’s mechanical systems, and prebuilt several office suites that mirrored the attractive look and feel of the building’s exterior and lobby,” Cooper Kramer, Savanna’s VP, told CPE. “Additionally, Savanna delivered a unique terrace floor on the building’s seventh floor. The capital improvements coupled with the tenant experience-based projects took the property to another level and will allow the purchaser to continue to successfully lease up the building.”
The landmark building is located southwest of Bryant Park on West 40th Street and houses a unique steel and glass tower, and boasts a spectacular 90-foot modernist mural by contemporary artist Sarah Morris.
Like us on facebook: https://www.facebook.com/pages/Commercial-Property-Executive/258033884191