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NEW YORK — Savanna has refinanced $145 million in first mortgage debt for 1375 Broadway, a 513,401-square-foot office building in New York. The multi-tenant building is located at the northwest corner of Broadway and West 37th Street in Manhattan’s Midtown South office market.
Savanna purchased 1375 Broadway in December 2010 and recently completed a major capital investment and repositioning initiative. The upgrades included renovation of the lobby, building entrance and retail storefronts, as well as façade and roof improvements. Savanna is currently marketing approximately 80,000 square feet of available office space, including a penthouse with a wraparound terrace.
“The refinancing of 1375 Broadway illustrates the substantial progress that Savanna has made in repositioning the building as an institutional-quality asset. We initiated a major capital improvement program, including a new lobby and new retail storefronts. These improvements have transformed the building into a core asset and have led to successful leasing of both office and retail space,” says Cooper Kramer, vice president of Savanna.
Jon Estreich, president of Estreich & Co., arranged the debt on behalf of the borrower through Mesa West Capital. The loan includes capital for future leasing costs.
“This is the first loan in our new lending program that is focused on financing core commercial real estate assets,” says Raphael Fishbach, a principal with Mesa West in the firm’s New York City office. “This complements our traditional program of originating bridge loans on more transitional properties. Both programs focus on asset sizes of between $15 million and $150 million throughout the United States.”
Los Angeles-based Mesa West Capital has originated $3.5 billion in financings on multifamily, office, retail, industrial and hotel properties, including more than $500 million in the New York area.
Formed in 1922, Savanna is a New York-based real estate private equity firm and asset management company. The firm focuses on opportunistic real estate equity and debt asset investments throughout the Northeast.
— Brittany Biddy