Savanna closes on Chelsea office building purchase for $90M

Purchase includes a $48M mortgage from Mesa West Capital

New York /
Dec.December 17, 2018 12:00 PM

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

Savanna is officially the new owner of 48 West 25th Street.

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.


Related Articles

arrow_forward_ios
Pastor Gregory Fryer and the Immanuel Lutheran Church at 120 and 122 East 88th Street (Getty Images, Immanuel NYC, Jim.henderson, CC0, via Wikimedia Commons)
Thou Shalt Not Sell: Lutheran group sues to stop church’s deals
Thou Shalt Not Sell: Lutheran group sues to stop church’s deals
From left: Jay Suites' Juda Srour and 104 West 40th Street; Convene's Phoenix Porcelli and 101 Park Avenue (LoopNet, LinkedIn/Phoenix Porcelli, 101Park.com)
Back-to-meetings spurs demand for flex space
Back-to-meetings spurs demand for flex space
Related Companies founder Stephen Ross and 33 Hudson Yards (Getty Images, LoopNet)
Related eyeing sale of Equinox Hotel
Related eyeing sale of Equinox Hotel
RJBlock Properties' Rodney "RJ Block" Jackson and 2714-2718 Frederick Douglass Boulevard (RJBlock Properties, Apartments.com, Getty Images)
I-sales roundup: RJ Block buys Harlem mixed-use portfolio
I-sales roundup: RJ Block buys Harlem mixed-use portfolio
From left: Colony Hills’ Glenn Hanson and Rosewood’s Jonathan Brody with The Royce at Trumbull (Getty, Royce at Trumbull, LinkedIn, Rosewood)
Investors sell Trumbull apartments for $101M, 23% markup from last year
Investors sell Trumbull apartments for $101M, 23% markup from last year
Street Partnership's Dan Biederman with Herald Square
“We’re not alarmed:” Herald Square retail in reverse
“We’re not alarmed:” Herald Square retail in reverse
Mayor Eric Adams and 700 Eighth Avenue (Google Maps, LoopNet)
Midtown’s Row hotel to house up to 600 migrant families
Midtown’s Row hotel to house up to 600 migrant families
Hoboken City Council's Michael Russo with 308 Willow Avenue (Google Maps, Hoboken, Getty)
Hoboken hospital eyed for eminent domain
Hoboken hospital eyed for eminent domain
arrow_forward_ios

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

Loading...