The Real Deal New York

Princeton International Properties closes $100M deal for Midtown office tower

December 17, 2012 09:30AM

The $100 million deal between Princeton International Properties and Savanna for Park House, at 104 West 40th Street, has officially closed after going into contract in September, the New York Observer reported. The sale to Princeton comes out to just under $500 per square foot, compared to the approximately $300 per square foot Savanna paid in a $64.5 million defaulted first mortgage buy in 2010.

Savanna renovated the 20-story,  210,000-square-foot Midtown office tower, near Bryant Park on 40th Street and Broadway, shortly after acquiring the building —updating the elevators, building systems and lobby.

The building rents from the low $50s per square foot to the $70’s, a roughly five to 10 percent increase since Savanna made renovations. It currently has three vacant floors.

“The lobby is very powerful, with extremely high ceilings, beautiful, original stonework and a glass façade,” Mr. Amrich said.  A contemporary mural by artist Sarah Morris out of London appears on the eastern side of the lobby, he added.

Adam Spies and Kevin Donner of Eastdil Secured represented the seller in the sale to Princeton. Paul Amrich and Neil King of CBRE will continue to market the building.

“This property has a very boutique feel, just steps from Bryant Park,” King said.  “It also has somewhat smaller floor plates, which is rare and really sets this apart.  The new owner will be very happy with this asset.” [NYO]Christopher Cameron