The Real Deal New York

Savanna is in contract to buy Chelsea office building for $100M

The private equity firm is expected to purchase 48 West 25th Street
October 24, 2018 11:30AM

Savanna’s Christopher Schlank and 48 West 25th Street (Credit: Google Maps)

Savanna is nearing a deal to buy a Chelsea office property for $100 million.

The private equity firm is in contract for the 126,000-square-foot building at 48 West 25th Street, which sits between Broadway and Sixth Avenue near Madison Square Park, according to the New York Post.

Built in 1920, the 12-story building has been owned by the Klapper family of Superior Sewing equipment since the 1970s. A Cushman & Wakefield team led by Adam Spies and Doug Harmon represented the owner.

Sources familiar with the deal said Superior Sewing plans to leave the retail space before its long-term lease is up, giving Savanna the chance to realize upside on the below-market rent.

The building is near Chelsea540, a boutique office development that Savanna sold earlier this year for $247 million. Jay-Z’s company Roc Nation signed a 73,000-square-foot lease in the building in March.

That same month, Savanna paid $640 million to buy Blackstone Group’s 5 Bryant Park. The company last year raised a $600 million value-add fund, its largest fund to date. [NYP] — David Jeans