Savanna’s Long Island City office tower just took a neighborhood rival to school.
The landlord signed away the New York City School Construction Authority to a 350,000-square-foot lease at One Court Square, the Commercial Observer reported. The agency will leave the Feil Organization’s 30-30 Thomson Avenue for the north side of Sunnyside Yards in 2024.
The 20-year lease spans 11 floors at the 50-story Long Island City building. The asking rent was not disclosed. No brokers were involved in the deal.
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The relocation is also an expansion for the agency. In a statement, SCA chief executive Nina Kubota noted it needed a larger office space as it tackles a larger portfolio of projects designed to improve school environments and reduce overcrowding.
One Court Square’s recent renovations include a 150,000-square-foot retail annex that counts Target among its tenants. Savanna managing director Brian Reiver said the SCA was drawn to its transit options, notably two subway lines accessible from inside the office building.
Savanna finalized an $880 million recapitalization of the 1.5-million-square-foot tower at the beginning of 2020. It landed a $580 million senior loan from Apollo Global Management and $100 million in subordinate debt from SL Green. Junius Real Estate Partners provided $200 million and converted its ownership position into a preferred equity stake.
Savanna is still smarting from Amazon’s backing out of its plans to build a 1-million-square-foot headquarters in Long Island City and rent a chunk of One Court Square in the process.
Savanna’s attempts to sell stakes or find lenders for One Court Square fell apart after Amazon’s abandonment in February 2019. That June, however, the investment manager signed a deal with telecom and cable firm Altice USA for 103,000 square feet.
— Holden Walter-Warner