Savanna’s Chelsea540 is expected to fetch north of $1,550 a square foot

The boutique office building is reportedly in contract for $260 million

New York /
Jul.July 25, 2018 09:10 AM

A rendering of Chelsea540 and Savanna Partners’ Christopher Schlank (Credit: Chelsea540)

The boutique office development Chelsea540 is under contract for $1,560 a square foot, according to a new report. If it closes at that price, it would represent the second highest price per square foot in the neighborhood after Alphabet’s record-setting Chelsea Market deal earlier this year.

The boxy 165,000-square-foot office and retail building at 540 West 26th Street, was developed by Savanna in partnership with the previous landowner, the Silvermintz family. The building is in contract with Lincoln Property Co. of Dallas for $260 million, which was first reported by the New York Post.

In 2015, Savanna and Silvermintz scored a $115 million construction loan from Deutsche Bank to build the project. Savanna acquired an unspecified stake in the building in 2014 for $24.7 million, Commercial Observer previously reported.

Cushman & Wakefield‘s Adam Spies, Doug HarmonAdam Doneger and Josh King are representing the developers in the deal.

Savanna and the Silvermintz family have been looking to sell the nine-story new development since March, shortly after Jay-Z’s Roc Nation company signed a lease for the building, taking over 73,000-square-feet on the top three floors.

Avenues: The World School, an international school for pre-k-12th grade leased the remaining 85,000 square feet of office space through 2045.

The building includes a snow-melting sidewalk and floors without columns. Above the office space is a penthouse with a roof-deck and 16-foot-high ceilings. [NYP] — David Jeans


Related Articles

arrow_forward_ios
1 North Moore (Google Maps, StreetEasy)
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Hudson Yards (Getty, iStock)
City’s bet on Hudson Yards beginning to pay off
City’s bet on Hudson Yards beginning to pay off
VTS CEO Nick Romito and Lane Technologies CEO Clinton Robinson 
VTS to buy office-app developer for $200M
VTS to buy office-app developer for $200M
From left: Marisa Lago, Anita Laremont and Mayor Bill de Blasio (LinkedIn, Getty, Wikimedia)
Politics, City Planning on collision course
Politics, City Planning on collision course
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Two of the eleven properties under threat of foreclosure (Google Maps)
Mack Real Estate may “strip” club owner of properties
Mack Real Estate may “strip” club owner of properties
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...