Savanna Lands $510M Refi for Manhattan Building

Savanna has nailed down a $510 million refinance for its 680,000-square-foot, 34-story office property at 5 Bryant Park, the Commercial Observer first reported. King Street Capital Management and Blue Owl Capital originated the floating-rate loan in a deal brokered by Eastdil Secured.

The note will retire the existing $463 million CMBS loan and fund a second-floor amenity center and other tenant improvements, as well as cover tenant lease-up costs. The building was 80 percent leased at the time of the transaction. Savanna aims to push 5 Bryant’s occupancy beyond 95 percent in the coming year.

The high-rise is in Savanna Real Estate Fund IV, a closed-end, private equity-backed fund whose investors reportedly agreed to extend the fund’s life because of the additional income growth they foresee over the next few years.

Savanna acquired the 1958-completed property for $640 million from Blackstone in May 2018, according to Yardi Matrix information. Since then, the company completed a full lobby and entrance renovation in 2020.

The high-rise is LEED Gold-certified, aligning with broader green building trends shaping office repositioning projects across Manhattan. Floorplates range between 7,500 and 34,000 square feet.

Eastdil Secured Managing Directors Rob Turner and Grant Frankel, along with Director Ethan Pond and Senior Vice President Drew Ahlers, negotiated the new loan.

High quality, high volume

Manhattan’s office investment volume continued to rank first nationally year-to-date as of October, clocking in at $6.4 billion, a recent Yardi Matrix report shows. Additionally, assets in the borough commanded the highest prices in the U.S., trading for $523 per square foot on average.

In October, SL Green entered into an agreement to acquire Park Avenue Tower, a 36-story office building in Manhattan, for $730 million. The transaction is expected to close early next year. EQ Office, now known as Perform Properties, previously bought the asset for $750 million.

During the same month, the investment division of Ingka Group paid $213 million for a 53,000-square-foot SoHo property. The new owner will bring a two-level IKEA store and four floors of office space at the mid-rise building.