Vanbarton Closes on 31 Penn Plaza

Vanbarton Group, a privately owned real estate investment and advisory firm launched last month by Gary Tischler and Richard Coles, completed the acquisition of 31 Penn Plaza in New York for $265 million. Savanna sold the 18 story, 450,000 square foot building after paying $130 million for the property in 2011, then adding around $20 million in capital improvements. Douglas Harmon, Adam Spies, Joshua King, Adam Doneger and Michael Saclarides of Eastdil Secured represented Savanna in the sale transaction, according to a citybizlist article. Attorneys Christopher Price and Adam Kopald of Goodwin Procter served as the seller's counsel.

"31 Penn Plaza has been a transformative case study that we are proud of," said Kevin Hoo, Managing Director at Savanna. "Savanna has significantly repositioned the property's infrastructure and tenant profile, and in the process, restored its attraction and reputation in a submarket that has experienced tremendous growth over the past few years. We are grateful to our entire team of partners and service providers who helped us achieve the turnaround."

"Landlords in these buildings are holding out for top dollar and can scrutinize the firms competing for their space more rigorously," said Bill Montana, Savills Studley's senior managing director in a prepared statement. "Class A tenants seeking 10,000 to 40,000 square feet, particularly those who are geographically flexible, have a wealth of options. Informed tenants who do not have a very limited geographical or floor requirement can take a calculated approach to leasing."

For more news and information visit Blumberg Partners.

Savanna Completes Sale of 100 Wall Street for $275M

Savanna closed on the sale of 100 Wall Street to Cornerstone Real Estate Advisers this week in a deal worth $275 million. Savanna originally acquired the 29-story office tower between Front and Water Streets in the Financial District in 2011 for about $120 million, adding about $25 million in capital improvements. Eastdil Secured's Douglas Harmon and Adam Spies brokered the sale on behalf of Savanna; terms of the deal were not disclosed.

"We are proud of the transformational change we achieved at 100 Wall Street," said Kevin Hoo, Managing Director at Savanna. "The incremental capital investment has significantly added to the property's future resiliency and repositioned it as a premier destination for a wide range of global, institutional quality tenants." In the past two years, Savanna leased over 355,000 square feet of space to several prominent businesses, raising the building's occupancy from 78% shortly after acquisition to 97% today. Major tenants include Lester Schwab Katz and Dwyer, Loeb Holding Corporation, Crenshaw Associates, and PCubed.

For more news and information visit Blumberg Partners.

JV Buys Bronx Commercial Building for $31M

Hornig Capital Partners (HCP) and Savanna, both real estate investment companies, have bought 2415 Third Ave. in the Mott Haven neighborhood of the Bronx, an eight-story loft building that they plan to remodel for about $12 million and rebrand as The Bruckner Building. The 8-story, 172,000 square-foot property at the corner of Third Avenue and East 134th Street was sold by Madhatters Realty with representation from DY Realty Services; Savanna and HCP's acquisition was financed by CapitalSource, with Mission Capital as placement agent for the loan. Savanna and HCP's capital improvement plan includes replacing and restoring the windows, rebuilding the lobby, modernizing the elevators, and upgrading common areas and mechanical systems.

"The neighborhood surrounding 2415 Third Avenue is changing and we are excited to be a part of that transformation," said Christopher Schlank, Managing Partner of Savanna, in a statement. "Several new developments and amenities are coming to the area, and as a result, are enhancing its attractiveness as a place to live and work." The waterfront between 138th and 149th Streets has been designated as the Special Harlem River Waterfront District, with the potential for up to 1.5 million square feet of commercial space, 2,000 residential units and 500,000 square feet of community space. Mayor Bill de Blasio recently announced that the City will make a $200 million investment in the waterfront redevelopment initiative.

"We look forward to partnering with Savanna on The Bruckner Building," added Daren Hornig, Managing Partner of Horning Capital Partners. "The capital improvements we have planned will position this property as an attractive option for commercial tenants who are looking to establish a place of business in this up-and-coming area."

For more news and information visit Blumberg Capital Partners.

Savanna Buys Manhattan Office Building for $261M

Savanna, in a joint venture with KBS Capital Advisors, announced this week that it had purchased 110 William Street from Swig Equities and the Dubai Investment Group for $261 million, or $281 per square foot. Terms of the deal were not disclosed, but press releases did indicate that Savanna was represented by Laurie Grasso and Susan Saslow of Hunton & Williams in the acquisition and Carl Schwartz of Hunton & Williams in the joint venture with KBS Capital Advisors.

"Our acquisition of 110 will accelerate the positive transformation of William Street that is occurring as institutional firms continue to buy and upgrade many of the adjacent properties," said Nicholas Bienstock, a managing partner at Savanna, in a statement. "By investing in and improving the building, we expect to attract the same diverse group of tenants that we have been able to attract to our other Downtown properties."

The 32-story, 928,000 square foot Financial District tower is located in the heart of Lower Manhattan, with direct entry from its lobby to the subway and the future Fulton Center, a new major transit hub scheduled for completion late next month. Savanna said it plans to undertake a comprehensive capital improvement plan at the building, with Newmark Grubb Knight Frank leading leasing efforts, and Swig Equities providing property management services.

"It's an exciting time to be investing in Downtown Manhattan as the long transformation has arrived, with over $30 billion in capital invested in Downtown from both the public and private sector over the last ten years," said Adam Spies of Eastdil Secured, which served as exclusive advisors for the transaction. "As Downtown has become the epicenter of the region's vast pool of high-value, knowledge workers, the demand for office space continues to increase, evidenced by 22 percent year over year increase in rental rates as of first quarter 2014."

For more news and information visit Blumberg Capital Partners.

Savanna to Develop New Chelsea Office Building

Savanna, a New York-based real estate private equity and asset management firm, announced this week that it had formed a joint venture with the Silvermintz Family and Jamison Weiner to develop 540 W. 26th St., a 160,000-square-foot office and art gallery building. Designed by Morris Adjmi Architects, the nine-story, 160,000-square-foot building will cater to office, art gallery and community facility tenants. Weiner, of the Manhattes Group, will be the exclusive leasing agent for the property, according to a GlobeSt.com report. Construction is expected to begin this summer.

"We are excited to introduce a state-of-the art office and gallery building to West Chelsea, which has become an epicenter of art, new media, technology and residential development in Manhattan," said Christopher Schlank, Managing Partner at Savanna, in a statement. "West Chelsea has grown exponentially in recent years and we look forward to being part of the continued transformation of the neighborhood."

"This site has been owned by my family for quite some time and Jamie Weiner and I have spent the last 15 years preparing it for a large scale development that we knew was going to be in the future of this neighborhood," said Michael Silvermintz. "We are very fortunate to have joined forces with the team at Savanna who share the same values, vision and drive that we have to bring a first-class property to the area and to contribute to the spectacular neighborhood of West Chelsea."

For more news and information visit Blumberg Capital Partners.

Savanna Finalizes 2 Rector St. Acquisition

Savanna, a real estate private equity firm run by Chris Schlank and Nick Bienstock, has acquired a controlling interest in 2 Rector Street. Savanna worked in partnership with Stellar Management to buy out Stellar's partners, including Lehman Brothers to secure a controlling interest in the property, according to a CoStar report. In 2010, Savanna became a part owner of the 464,000-square-foot, 26-story office building when it helped landlord Stellar Management restructure a loan. The building at the time couldn't make debt payments because it had lost its largest tenant, according to a Wall Street Journal article.

According to data from Real Capital Analytics, the first mortgage that Savanna bought in to was $100 million in CMBS, while the 2007 mezzanine loan was $10 million. "Our capital work will transform 2 Rector Street into a modern Lower Manhattan office tower located just steps from the World Trade Center development, complete with highly desirable office suites built to suit our tenants' needs," Andrew Fichte, a vice president at Savanna, said in a prepared statement.

A Jones Lang LaSalle team headed by Vice Chairman Mitchell Konsker, Senior Vice President Scott Cahaly and Vice President Brian Reiver will handle leasing at the building. Savanna is planning an an extensive capital improvement program, spending millions of dollars to upgrade the building's lobby, elevators, restore its exterior and modernize a number of building systems.

For more news and information visit Blumberg Capital Partners.

31 Penn Plaza in NYC Sold for $130M

Savanna, a New York-based real estate private equity firm, announced the acquisition of 132 W. 31st St., an office building near Madison Square Garden and Penn Station in Manhattan, according to a Crain's New York Business article. Jones Lang LaSalle advised the Seller, a joint venture between C&K Properties and Zamir Equities, in the off-market transaction. Savanna has appointed Jones Lang LaSalle as the leasing and property management team lead by JLL's Mitchell Konsker, Vice Chairman, along with Matthew Astrachan, Vice Chairman, and Matt Polhemus, Associate.

"We are excited to add 31 Penn Plaza to our Manhattan office portfolio," said Christopher Schlank, a managing partner of the firm, in a statement. "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."

Savanna's renovation plans include a brand new entrance and lobby, upgraded elevators and other maintenance additions to the property.

For more news and information visit Blumberg Capital Partners.