Savanna has gone into contract to sell the Bruckner building for $65 million, The Real Deal has learned.
The landlord is selling its South Bronx waterfront building at 2417 Third Avenue to ZG Capital Partners, according to people familiar with the matter. The deal, which works out to around $369 per square foot, is expected to close by the end of the year.
Savanna and Hornig Capital Partners have owned the 176,000-square-foot Mott Haven property since 2015, when it was purchased for $30 million, according to earlier reports. The partners reportedly invested $12 million in capital improvements to the building, which overlooks the Harlem River. Its tenants include catering company Great Performances, which signed a lease in January for 41,000 square feet.
Savanna did not respond to requests for comment. Daren Hornig, managing partner of Hornig Capital Partners, declined to comment. ZG Capital Partners, a partnership between Bobby Zar and James Tamborlane, also declined to comment.
Savanna has had a prolific year of dealmaking. In May it reportedly went into contract for 360 Lexington Avenue for close to $180 million. The same month, it closed on a $110 million acquisition of 24-28 West 25th in the Flatiron District.
Zar and Tamborlane, meanwhile, are joining a wave of developers rushing to invest in the South Bronx waterfront. Brookfield last year paid $165 million to Chetrit Group and Somerset Partners for a seven-building development with 1,300 residential units.
Zar’s firm also owns 1450 Broadway in Manhattan, which houses tenants Insight Direct USA and DK Publishing. WeWork is also a tenant and holds a 15-year lease for 56,000 square feet in the building.