Invesco Swallows Loss on Meatpacking Office Sale to Savanna

A year and a half ago, when Invesco tapped Eastdil Secured to market the leasehold at 430 West 15th Street in the Meatpacking District, it signaled a willingness to take a significant discount on what it paid in 2018.

Turns out, the leaseholder was ready to accept almost half the amount it spent on the property six years ago.

Savanna Real Estate Fund paid $85 million for the leasehold of the 100,000-square-foot space, the Commercial Observer reported. The all-cash transaction was first reported by Traded.

The acquisition works out to $912 per square foot. An Eastdil Secured team including Gary Phillips and Will Silverman brokered the deal.

Invesco started marketing the converted parking garage last June and braced for offers far below the $150 million it paid to the Teachers Insurance and Annuity Association for the property two years before the pandemic. Just two years before that, TIAA had paid $107 million.

Live Nation is the tenant for the Class A office building’s eight stories. It moved in on a sublease obtained from Palantir Technologies in 2017.

Savanna recently bought another depressed Manhattan office property, despite dealing with the fallout from its own pre-pandemic office buying binge. Last month, Savanna acquired 799 Broadway in Greenwich Village from Columbia Property Trust for $255 million, or $1,433 per square foot.

That, too, was an all-cash deal, reportedly bankrolled by Greek copper billionaire Telis Mistakidis, an unnamed source told The Promote.

The West 15th Street deal was also the second time in a matter of months that Invesco swallowed a loss on a property transaction. In October, Spanish fast fashion billionaire Isak Andic’s real estate company purchased the retail condo at 512 Broadway for $26.9 million, roughly half what Invesco paid for the property 14 years earlier.

— Holden Walter-Warner