Savanna Makes $130M Building Grab in NYC’s Midtown
- Sep 28, 2011
September 29, 2011
By Nicholas Ziegler, News Editor
Savanna, the New York-based firm, has just acquired the 18-story, 440,000-square-foot 31 Penn Plaza in NYC’s Midtown area. The seller, a joint venture between C&K Properties and Zamir Equities, were represented by Jones Lang LaSalle in the off-market transaction. The sale price was approximately $130.7 million.
“The neighborhood surrounding Penn Station and Madison Square Garden is a growing mixed-use sub-market with plans for millions of square feet in office, retail, residential and hotel development over the next few years,” Christopher Schlank, managing partner of Savanna, said. “The improvements we have planned for the building should position 31 Penn Plaza as one of the upper-tier buildings in the neighborhood.”
The surrounding market is one of both new and continued growth. According to a report by CB Richard Ellis, leasing activity has been and will be strong. The second quarter of 2011 topped the five-year quarterly average for leasing by 51 percent, while year-to-date activity is 25 percent ahead of the same period in 2010. Availability continues to fall, dropping to its lowest level since 3Q08, and asking rent rose 4 percent from first-quarter levels.
Located at 132 West 31st St., the building has a number of planned improvements coming its way, as Savanna has planned a $26 million improvement plan to renovate and modernize the facility. The building will continue to push to the forefront of the Class A space, offering up to 160,000 square feet of continuous leaseable space for a single tenant.
Earlier this month, Savanna purchased Manhattan’s 80 Broad St. for $65 million.