[Updated at 4:30 p.m.] New York-based real estate private equity and asset management firm Savanna has acquired 31 Penn Plaza, an 18-story, 444,000-square-foot, multi-tenant office building at 132 West 31st Street, between Sixth and Seventh avenues, the company announced today. CoStar told Crain’s that the transaction was worth $130 million.
The building, which offers full-floor office space of about 27,000 square feet per floor, will undergo $26 million in capital improvements to update the building and lease the available office space, Savanna said, including a new front entrance and fully renovated lobby.
“The neighborhood surrounding Penn Station and Madison Square Garden is a growing mixed-use submarket with plans for millions of square feet in office, retail, residential and hotel development over the next few years,” said Christopher Schlank, a managing partner of Savanna. “The improvements we have planned for the building should position 31 Penn Plaza as one of the upper tier buildings in the neighborhood.”
Jones Lang LaSalle is the exclusive leasing and property agent for the property. The team will be led by Mitchell Konsker, vice chairman of Jones Lang LaSalle, along with Matthew Astrachan, vice chairman, and Matt Polhemus, associate.
A Jones Lang La Salle team of Ron Cohen, Richard Baxter, Scott Latham and Jon Caplan also advised the seller, a joint venture between C&K Properties and Zamir Equities,in the deal.
As The Real Deal previously reported, Savanna has been on somewhat of a spending spree this year. In May, the company announced it had acquired 100 Wall Street from Lehman Brothers Holdings through a UCC foreclosure auction and just last week, it took the title to 80 Broad Street. –– Katherine Clarke