Summit Properties has bought the leasehold of 444 Madison Ave. for $41.7 million, according to public records. The 42-story, Art Deco tower in Midtown East spans 475,000 square feet; was completed in 1931; and has seen several rounds of work since, including a full renovation in 1996 and cosmetic updates in 2008. The base of the building includes 14,666 square feet of retail.

The sale drew attention because earlier reports suggested that Savanna was in line to purchase the property, either on its own or alongside Summit. In the end, Summit closed as the sole buyer with Savanna appointed asset manager and JLL named exclusive leasing agent. The seller, Westbrook Partners, had defaulted on a $120 million mortgage tied to the property.

“We intend to invest and turn the iconic tower into a top-tier building for premier tenants who value location, prestige and quality,” said Zohar Levy, Summit’s chairman and main shareholder.

According to the New York Post, the tower, known as the “Newsweek Building”, currently has a 135,000-square-foot, contiguous block of space available, in addition to the option for rooftop signage once used by Burberry, New York Magazine and Newsweek. Tenants in place include law firm Schwartz, Sladkus, Reich, Greenberg; the Doris Duke Foundation; EOS Hospitality; and Capital Dynamics.

For Summit, which is best known in New York as a multifamily owner, the deal marks a move into new territory. The Post reports that the company holds 2.66 million square feet of apartments across 90 city buildings. On its website, Summit also lists more than 500 hotel rooms and 28 super-regional malls in its wider portfolio.