THE BRONX, NY—Savanna, a New York-based private equity and asset management firm, has acquired 2415 Third Avenue, a commercial loft building located in the Mott Haven neighborhood of the Bronx in a joint venture with Hornig Capital Partners. The seller was Madhatters Realty. The deal was worth $31 million, (or $177 per square foot), according reliable industry data.

The property is an eight-story, 172,000 square-foot building at the corner of Third Avenue and East 134th Street. The building is part of a transforming neighborhood with several new large-scale residential developments underway. Savanna and HCP will launch a $12 million capital improvement plan and re-brand the property, which is located across the Third Avenue Bridge from Bruckner Boulevard, as The Bruckner Building.

Historically an epicenter for the piano manufacturing industry in the early twentieth century, Mott Haven is now home to a growing arts community. The waterfront between 138th and 149th Streets has been designated as the Special Harlem River Waterfront District, with the potential for up to 1.5 million square feet of commercial space, 2,000 residential units and 500,000 square feet of community space. Mayor Bill deBlasio recently announced that the City will make a $200 million investment in the waterfront redevelopment initiative.

Additionally, the Chetrit Group and Somerset Partners have purchased two lots adjacent to The Bruckner Building with plans for 1.2 million square feet of market rate residential development.

“The neighborhood surrounding 2415 Third Avenue is changing and we are excited to be a part of that transformation,” said Christopher Schlank, managing partner of Savanna. “Several new developments and amenities are coming to the area, and as a result, are enhancing its attractiveness as a place to live and work.”

2415 Third Avenue also offers tremendous connectivity to Manhattan. The building is adjacent to the Third Avenue Bridge and within blocks of the 4, 5, and 6 subway lines.

Featuring approximately 22,000 square-foot floor plates and 12' ceiling heights, 2415 Third Avenue is currently a mix of high-quality commercial uses. Savanna and HCP's capital improvement plan includes replacing and restoring the windows, rebuilding the lobby, modernizing the elevators, and upgrading common areas and mechanical systems.

“We look forward to partnering with Savanna on The Bruckner Building,” said Daren Hornig, managing partner of HCP. “The capital improvements we have planned will position this property as an attractive option for commercial tenants who are looking to establish a place of business in this up-and-coming area.” 

DY Realty Services represented Madhatters Realty in the sale. Savanna and HCP's acquisition was financed by CapitalSource, with Mission Capital as placement agent for the loan.

Formed in 1992, Savanna is an institutional real estate private equity firm and asset management company based in New York City and run by Schlank and partner Nick Bienstock.