Savanna has closed on its acquisition of 1375 Broadway from Westbrook Partners for $435 million. The firm landed a $388.5 million financing package to facilitate the deal that was put into contract in February.
- Financing details: Brookfield Real Estate Finance originated the senior/mezzanine debt, syndicating the $200 million senior portion to Deutsche Pfandbriefbank and Aareal Capital, and retaining the $103.5 million mezz position. Declaration Partners took a roughly $85 million preferred equity position in the deal, according to the Commercial Observer.
- Why it matters: This deal is the first purchase out of the firm’s fifth private equity fund, which it launched late last year. One source told TRD that Savanna held an initial closing on the fund of about $100 million. The company usually raises money from investors in different phases for its funds, which can reach $500 million. But income projections have fallen since Savanna initially underwrote the deal, and it could be difficult to get more investors to buy into a fund that’s already underperforming. The non-refundable deposit on this deal was reportedly north of $30 million.
- Ironic Flashback: Westbrook purchased the property from Savanna for $310 million in 2015. The 27-story building spans roughly 500,000 SF, and is located between West 37th and West 38th Streets. Accounting firm Anchin, Block & Anchin occupies roughly 120,000 square feet on a lease that expires in a few years. [CO+TRD]