NEW YORK — TIAA-CREF has acquired 21 Penn Plaza, a prime midtown Manhattan office property, from a joint venture between Savanna and the Feil Organization. The purchase price was undisclosed, but Crain’s New York Business reported the asking price for the property was $250 million in July.
Situated on the southeast corner of W. 31st St. and 9th Avenue, 21 Penn Plaza is adjacent to Manhattan’s newest neighborhood, the Hudson Yards District. The 16-story, 380,000-square-foot property is within the epicenter of the $27 billion of investment currently underway on Manhattan’s far west side.
“We believe this property is well positioned to take advantage of the rapid changes and revitalization happening in Midtown West,” says Henry Dong, senior director of global real estate for TIAA-CREF. “Rents are on the upswing in the area and we see that trend continuing. The massive redevelopment of the neighborhood should make it a destination for employers, tourists, shoppers and new residents.”
Following an investment of close to $5 million in building upgrades, including new lobbies, entrances and mechanical systems, Savanna and the Feil Organization successfully leased more than 225,000 square feet of space to restabilize the property at 98 percent occupancy prior to marketing the property for sale through Bob Knakal and his team at Massey Knakal Realty Services. The joint venture purchased the property in 2011.
Retail tenants include Avon, Dunkin’ Donuts and H&R Block. Office tenants include Saks & Co., Langan Engineering and Amtrak. The TIAA Real Estate Account, a TIAA insurance separate account, will hold the property following the acquisition.
Nearby developments include the Moynihan Station, which is located directly across the street; Related Cos. and Oxford Properties Group’s Hudson Yards; and Brookfield’s Manhattan West.
The property is near commuter rail service, the West Side Highway, the Lincoln Tunnel and Hudson River ferries. The NYC subway system is accessible via nearby Penn Station and, next year, the extension of the No. 7 subway to 34th Street and 11th Avenue. In addition, the final section of the High Line public park has just opened, extending to 34th Street and 12th Avenue.
“21 Penn Plaza is located in the path of progress of the exciting development occurring in the far west side of Manhattan,” says Knakal. “Its location, combined with the quality of tenancy and capital improvements in the property make it an ideal home for companies seeking to define the frontier of what should become a new epicenter of activity in Manhattan.”
— Danielle Everson