SAVANNA AND KBS ACQUIRE 110 WILLIAM STREET IN MANHATTAN FOR $261M

by admin

NEW YORK — New York-based real estate private equity and asset management firm Savanna has acquired 110 William Street in the heart of Manhattan’s financial district in a joint venture with KBS Capital Advisors for $261.1 million.

The property is a 32-story, 928,000-square-foot office tower located at the corner of William and John streets.

Savanna and KBS purchased the building from Swig Equities and the Dubai Investment Group for $281 per square foot. Douglas Harmon and Adam Spies of Eastdil Secured were exclusive advisors for the transaction. Laurie Grasso and Susan Saslow of Hunton & Williams represented Savanna in the acquisition and Carl Schwartz of Hunton & Williams represented Savanna in the joint venture with KBS Capital Advisors.

“It's an exciting time to be investing in downtown Manhattan as the long transformation has arrived, with over $30 billion in capital invested in downtown from both the public and private sector over the last 10 years,” says Adam Spies of Eastdil Secured. “As downtown has become the epicenter of the region’s vast pool of high-value knowledge workers, the demand for office space continues to increase, evidenced by a 22 percent year-over-year increase in rental rates as of the first quarter of 2014.”

Savanna plans to undertake a capital improvement plan at the building during its hold period, which includes modernizing the lobby and entrance, renovating the roof and façade, and upgrading bathrooms and corridors. A Newmark Grubb Knight Frank team of Hal Stein, Andrew Peretz, Adam Leshowitz and Todd Stracci will lead leasing efforts, while Swig Equities will provide property management services.

110 William Street offers transportation access that includes direct entry from its lobby to the subway and the Fulton Center, a transit hub to be completed in June. Fulton Center will link eight subway lines and an estimated average of 275,000 passengers per day.

In addition, the World Trade Center Transportation Hub to be completed in 2015 will serve more than 200,000 commuters each day. It will connect visitors to 11 subway lines and the PATH rail system.

Savanna was formed in 1992 and is run by managing partners Chris Schlank and Nick Bienstock. The private equity firm has invested more than $2.1 billion across 19.3 million square feet of office, retail, residential and industrial property.

— Scott Reid

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