The Real Deal New York

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
July 25, 2018 09:10AM

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