Savanna has secured an $880 million recapitalization of its One Court Square in Long Island City, CO first reported. The deal comes nearly a year after Amazon backed away from its plan to lease space in the 50-story tower previously occupied by Citigroup.
- Worth Noting: Tenants in the 1.5 million-square-foot office building now include Centene (500,000 SF), and Altice USA (103,133 SF).
- Financing details: Apollo provided a $580 million senior loan, while SL Green supplied $100 million of subordinate debt. Junius Real Estate Partners provided the remaining $200 million in the form of a preferred equity stake, which it converted from a previous ownership position. The financing also replaces a $315 million CMBS loan originated by Natixis in 2016.
- Heard on the Street: Asking rents in the building range from $55 to $65 per square foot; however, city tax incentives (AKA Relocation and Employment Assistance Program) could reduce a tenant’s rent by as much as $25 per foot. The REAP program expires on June 30, 2020, which puts Savanna in a bind to fully tenant the building by then.
- Be Smart: On top of the state’s final $1.7 billion package, New York City ultimately offered Amazon up to $1.3 billion of extra incentives. The WSJ noted over the weekend that this represents more than $800 million the media reported at the time.