The Real Deal New York

Savanna steps in to take over Swig’s 80 Broad

May 03, 2011 08:53AM

Savanna Investment Fund has purchased the senior mortgage loan on Kent Swig’s troubled 80 Broad Street office tower at a discount and is likely to begin foreclosing on the property within the week. Sources told the Post that Savanna received a 12 percent discount off of the $75 million face value of the loan, which has been in special servicing with J.E. Robert Companies since last winter. Swig led a partnership that purchased the 410,000-square-foot building for $70 million in 2004, but by 2010, the property was appraised for just $67 million and entered into “covenant default” even though Swig was still making mortgage payments at the time. Asking rents at the building are currently around $32 per square foot, down from the $40 per square foot Swig had anticipated he could get. Some 24 bidders were said to have attempted to purchase the note, which was on offer through Cushman & Wakefield Capital Markets Group’s Steve Kohn, Helen Hwang, Nat Rockett and Karen Wiedenmann. “We are very pleased that Savanna is now the first mortgage of 80 Broad Street and that Swig Equities will remain the property manager and leasing agent,” a Swig representative said. [Post]

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