Olmstead Scoops Up Savanna’s Midtown Office At 45% Off

Olmstead Properties snapped up a Midtown office building for $108 million, a steep markdown from its last trade in 2017, The Real Deal has learned.

Olmstead bought the 16-story, 303,000-square-foot property at 19 West 44th Street from Savanna, almost a decade after the private equity firm paid $195 million for the Class B building between Fifth and Sixth avenues. Savanna spent $20 million on upgrades to the building, according to the property’s website.

Eastdil Secured’s Will Silverman and Gary Phillips brokered the deal. Eastdil and Olmstead declined to comment. Savanna did not immediately respond to a request for comment.

Olmstead bought the building in partnership with Vertex Properties, an investment platform launched by Olmstead executives Adam Arnow and Patrick Pavone. The pair have made three acquisitions since Vertex launched six months ago, including 381 and 373 Park Avenue South from Josh Rahmani and Ebi Khalil’s Empire Capital.

At the time, Olmstead managing director Steve Marvin said the properties’ “classic architecture, prime location and untapped potential” fit the company’s broader playbook.

“Our broader portfolio is 95 percent leased because tenants value how we operate and manage our buildings. That strong demand positions us well to bring new energy and new tenants to these two properties,” Marvin said in a statement in November.

This building seems to match that profile. Built in 1917, the property is about 80 percent occupied.