Stellar and Savanna recapitalize 2 Rector

July 28, 2010 04:45PM

2 Rector Street (source: PropertyShark)

Stellar Management and Savanna Real Estate Fund have successfully
recapitalized the Lower Manhattan office tower located at 2 Rector
Street. The price was undisclosed, although sources told the Post it
was close to $10 million. Stellar acquired 2 Rector Street in 1997. The
430,000-square-foot, 26-story building occupies the full block front on
Rector StreetBetween Greenwich Street and Trinity Place. The
recapitalization, which effectively recasted the mortgage, puts a
structure in place that provides for the building’s near-term leasing
prospects and longer-term stability.

Both
firms, which partnered in the deal, have committed fresh capital
towards re-tenanting the building. A portion of this equity will be
earmarked for current and future tenant improvements and the
fulfillment of all brokerage commissions. Pre-built units will range
from 4,000 to 7,000 square feet, and an architect has been assigned to
assist all new tenants on build-outs. Earlier this month, The Real Deal reported that developer Laurence Gluck was facing a $110 million foreclosure suit at 2 Rector Street from Bank of America, about a year after losing one of his largest tenants at the building. TRD