Capstone, AmTrust buying Midtown East office for one-third of 2019 price

Joshua Zamir’s firm in contract to buy Savanna’s 360 Lexington for $65M

Capstone Equities' Joshua Zamir, 360 Lexington Avenue, Savanna's Chris Schlank and Nick Bienstock (Getty, Savanna)
Capstone Equities' Joshua Zamir, 360 Lexington Avenue, Savanna's Chris Schlank and Nick Bienstock (Getty, Savanna)

Joshua Zamir’s Capstone Equities and AmTrust RE are buying a Midtown East office building for a third of its $180 million price from five years ago, The Real Deal has learned.

Capstone and AmTrust are in contract on Savanna’s 360 Lexington Avenue for $65 million. That’s a deep discount to the $180 million Chris Schlank and Nick Bienstock’s Savanna paid for the 270,000-square-foot office and retail building in 2019, when it was about 82 percent leased.

The property now is 60 percent leased, and with its $110 million mortgage due, Savanna was in an unenviable position — as were its lenders on the property, Barclays and PPM America. The lenders directed the sales process.

A spokesperson for Savanna declined to comment and a representative for Capstone did not respond to a request. A Newmark team led by Adam Spies and Adam Doneger negotiated the deal.

The property, which sits a short walk from Grand Central Terminal, had been pitched as a potential office-to-residential conversion, but the plan now is to keep it as an office building.

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Savanna bought the 24-story building from AEW Capital Management at a time when it was busy buying up office buildings.

Around the same time, it bought 521 Fifth Avenue from SL Green Realty for $381 million and a Flatiron District office property at 24-28 West 25th Street for $110 million.

But Savanna, like many other investors, has struggled with a weak office market and rising interest rates.

Late last year the company handed its Harlem office building at 1825 Park Avenue over to its lenders.

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