Savanna struggling to recapitalize emptyting LIC office tower: report

No Amazon HQ means a 1 million-square-foot liability at One Court Square

New York /
Feb.February 21, 2019 11:10 AM

Savanna’s Chris Schlank and One Court Square in Long Island City (Credit: Getty Images and Wikipedia)

One Court Square landlord Savanna can’t refinance the Long Island City office tower after losing a 1 million-square-foot tenant in Amazon.

The Wall Street Journal reported that the company’s talks to either borrow more money or sell stakes in the property are now dead, as any deal had been contingent on Amazon moving workers into One Court Square as part of its new campus in Long Island City.

As The Real Deal reported previously, Amazon pulled out of a preliminary deal to build its so-called “HQ2” after mounting opposition from city officials and Queens residents.

Savanna’s loan for One Court Square matures in 2020, just as CitiGroup is scheduled to leave the 1 million square feet of space reserved for Amazon, leaving the building 70 percent vacant. The $315 million loan balance could go into default if Savanna can’t work something out by then, the Journal reported.

But Savanna was counting on an Amazon-level tenant to make its 2014 venture to buy the property profitable in the first place, according to Marx Realty’s Craig Deitelzweig. “A lot of the tenants who were looking at Long Island City were lower-paying tenants, and there weren’t the signature rent tenants that would drive leasing… Amazon was that.” [WSJ] — Will Parker


Related Articles

arrow_forward_ios
Douglas Durst with 114 West 47th Street and 1133 Sixth Avenue (Getty, Google Maps)
What tenants pay at two Durst towers in Midtown
What tenants pay at two Durst towers in Midtown
Aby Rosen and 522 Fifth Avenue (Getty, Google Maps)
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
RFR pitches Fifth Avenue office building as “build-to-suit” corporate HQ
Nearly half of new shops in 2021 will be dollar stores. (Getty)
2021 is raining dollar stores
2021 is raining dollar stores
National chains and mom-and-pop stores are seeing increasing sales per square foot and shrinking occupancy costs (Getty)
National chains paid 93% of rent in April
National chains paid 93% of rent in April
(RIPCO, iStock)
Target, Five Below, Smashburger open in new Brooklyn shopping center
Target, Five Below, Smashburger open in new Brooklyn shopping center
Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)
Big year seen for hotel openings, despite few visitors
Big year seen for hotel openings, despite few visitors
Savanna’s Christopher Schlank and Nicholas Bienstock with a rendering of 141 Willoughby Street (Savanna; SLCE Architects; Fogarty Finger Architects)
Savanna nabs $264M loan for Downtown Brooklyn office project
Savanna nabs $264M loan for Downtown Brooklyn office project
Blackstone president Jon Gray and the Blackstone headquarters at 345 Park Avenue in NYC (Getty, Google Maps)
Blackstone sets office return for some vaccinated staffers
Blackstone sets office return for some vaccinated staffers
arrow_forward_ios

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

Loading...