The firm has closed on its purchase of the Chelsea office building for $90 million, according to property records. Reports surfaced in October that the company was closing in on a deal to buy the building between Broadway and Sixth Avenue for closer to $100 million.
Savanna purchased the building from the Klapper family, which has owned it since the 1970s. A Cushman & Wakefield team of Adam Spies, Adam Doneger and Josh King represented the seller.
Savanna financed its purchase with a $47.9 million mortgage from Morgan Stanley’s Mesa West Capital. The package included a roughly $42.1 million gap mortgage.
Savanna is planning to undertake $21 million of renovations at the building. These include revamping the lobby, repairing the roof and façade and upgrading prebuilt space on the seventh floor.
The 12-story building was built in 1920 and spans about 126,000 square feet. It is located near the boutique office property Chelsea540, which Savanna sold earlier in the year for $257 million.
The firm is also playing a prominent role in Amazon’s new campus in Long Island City, as the tech giant plans to lease about 1 million square feet of space in Savanna’s One Court Square office tower.