Savanna picks up 521 Fifth Ave for $381M

SL Green said in January that it was putting the building on the market
By Eddie Small | March 28, 2019 11:02AM

From left: SL Green CEO Marc Holliday, 521 Fifth Avenue, and Savanna managing partner Chris Schlank (Credit: Google Maps)

Savanna is buying the former Lefcourt Colonial Building at 521 Fifth Avenue.

SL Green is selling the property to Savanna for $381 million, it announced on Thursday. The building stands 39 stories tall and spans 460,000 square feet, and the deal should close in the second quarter of 2019.

SL Green owns 50.5 percent of the building, and a joint venture between LaSalle Investment Management and Quantum Global Real Estate known as Plaza Global Real Estate Partners owns the other 49.5 percent.

SL Green bought the property in 2011 for $225 million and sold the minority stake to LaSalle and Quantum for $72 million.

CBRE’s Darcy Stacom and Bill Shanahan represented the sellers in the deal.

Savanna declined to comment on the deal. SL Green’s co-chief investment officer Isaac Zion said in a statement that the sale “demonstrates the strong demand for quality assets in East Midtown.”

SL Green executives announced plans to put the building on the market during their January earnings call to help the real estate investment trust finance its stock buyback program. LaSalle and Quantum put their stake on the market in 2018, when sources familiar with the property valued it at $450 million.

The building’s tenants include Berkadia Commercial Mortgage, KGS Capital Markets, Chinatrust Commercial Bank, Urban Outfitters and Equinox.