The Real Deal New York

Savanna closes on Chelsea office building purchase for $90M

Purchase includes a $48M mortgage from Mesa West Capital
By Eddie Small | December 17, 2018 12:00PM

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.