The Real Deal New York

Westbrook takes controlling stake in two Midtown office towers

1375 Broadway and 31 Penn Plaza together valued at $650M

March 05, 2015 12:30PM
By Tess Hofmann

From left: 1375 Broadway and 31 Penn Plaza in Midtown

From left: 1375 Broadway and 31 Penn Plaza in Midtown

Westbrook Partners has picked up a 96 percent stake in a pair of Midtown office towers from Savanna for an undisclosed sum, according to data from Real Capital Analytics. The buildings at 1375 Broadway and 31 Penn Plaza are together valued at approximately $650 million.

The 27-story, 513,000-square-foot office building at 1375 Broadway, between 37th and 38th streets, is valued at $356.2 million. Savanna bought it for $135 million in 2010. The building is over 90 percent leased.

The smaller of the two towers, 31 Penn Plaza, is valued at $293.7 million and spans 444,000 square feet. Savanna acquired a leasehold interest in it for $130 million in 2011. The 18-story building, built in 1925 and renovated in 1999, is located adjacent to Penn Station and is 98 percent leased.

The deal is the fourth largest of the year so far in New York City, behind Norges Bank’s purchase of a stake in 11 Times Square, the sale of the Waldorf Astoria and RXR Realty’s sale of a stake in its 6-building portfolio to Blackstone.

Savanna will retain a small equity stake, according to Real Estate Alert, which first reported news of the deal.

Eastdil Secured represented Savanna in the transaction.

Meanwhile, Savanna is marketing another major office property, at 100 Wall Street, for as much as $250 million, as previously reported.

Representatives from Eastdil Secured, Westbrook and Savanna were not immediately available to comment.

Kyna Doles contributed reporting.

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