Savanna closes on Garment District office with $388M loan

Firm went into contract on 27-story office at 1375 Broadway in February

New York /
Jul.July 15, 2020 09:35 AM
Savanna’s Chris Schlank and Nick Bienstock with 1375 Broadway (Credit: Google Maps)

Savanna’s Chris Schlank and Nick Bienstock with 1375 Broadway (Credit: Google Maps)

The private equity fund closed its $435 million purchase of 1375 Broadway from Westbrook Partners last week, Commercial Observer reports. In May, The Real Deal reported that the transaction could slow down Savanna’s fundraising efforts.

To complete the deal, Savanna landed $388.5 million in financing from a consortium of lenders including Brookfield Real Estate Finance, investment firm Declaration Partners and two entities tied to Deutsche Pfandbriefbank and Aareal Capital Corporation.

Brookfield originated the senior and mezzanine debt, syndicating $200 million in senior debt to the German entities, and kept $103.5 million in mezzanine debt on its books.

Declaration Partners, which is backed by the Carlyle Group’s co-founder and co-executive chairman David Rubenstein, took a $85 million equity stake.

Savanna previously owned the Garment District building, paying Chedward Realty Corporation $135 million for the property in 2010. Savanna sold it to Westbrook in 2015 for $310 million.

The sale and financing of the deal was brokered by Cushman & Wakefield. [CO] — Erin Hudson


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