Nice value-add office play
Savanna has closed on its acquisition of 48 West 25th Street from the Klapper family for $90 million, according to the NYPost. The Chelsea office and retail building spans 126,258 SF, and sits between Broadway and Sixth Avenue. Savanna plans to invest $21 million in the building to renovate the lobby, refresh its ground-floor retail space, and repair the roof and facades.
Acquisition financing: Savanna secured a $47.9 million mortgage from Morgan Stanley’s Mesa West Capital to close the deal. The package also included a $42.1 million gap mortgage.
Chelsea is piping hot: Chelsea has become the destination for technology companies, and office rents sometimes command over $100 per foot.