Savanna Acquires Midtown Office Tower for $180M

The firm has acquired 360 Lexington Avenue with $126M in financing from Barclays.

360 Lexington Avenue, New York City

NEW YORK – Real estate investment manager, Savanna has acquired 360 Lexington Avenue in Midtown Manhattan for $180 million. The New York City-based firm financed the transaction with a $126 million loan provided by Barclays.

The 268,383-square-foot office tower is located in the growing Grand Central submarket, on the northwest corner of Lexington Avenue and East 40th Street. Situated two blocks from Grand Central Terminal with transportation access to ten subway lines, the property is positioned in close proximity to numerous retail and dining options, as well as local institutions such as the New York Public Library and Bryant Park.

The 24-story building offers a variety of layouts for tenants, ranging from 4,000 to 15,200 square feet.

Savanna has announced a $20 million capital improvement plan to rebrand and reposition the property into a modern office space. The transformation will include lobby and entrance renovations, new bathrooms and corridors and certain infrastructure upgrades. The firm also plans to enhance the building’s existing windows, natural light, air quality and accented façade.

In addition to the repositioning, Savanna will implement new marketing efforts and launch a leasing campaign, led by Mitch Konsker, Barbara Winter, Ben Bass and Kip Orban of JLL.

Eastdil Secured’s team of Grant Frankel, Philip McKnight and Rob Turner arranged the financing for the acquisition on behalf of Savanna. Cole Schotz PC acted as legal counsel to Savanna in the transaction. Hunton Andrews Kurth LLP served as legal counsel for Barclays in the transaction.

Savanna, founded in 1992, is a vertically-integrated real estate investment manager, owner, operator and developer that focuses on property investments throughout New York City. The firm has invested in more than $4 billion in capital across 15 million square feet of property since 2006.