NEW YORK CITY-Savanna said Friday it had lined up $145 million worth of refinancing on its 1375 Broadway, which acquired in December 2010. The loan came from Mesa West Capital and includes capital for future leasing costs at the 513,401-square-foot Garment District office tower. Jon Estreich, president of Estreich & Co., arranged the debt on Savanna's behalf.
In a release, Savanna VP Cooper Kramer says the refi “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.” Such improvements, Kramer says, have “transformed the building into a core asset and have led to successful leasing of both office and retail space.”
When Savanna acquired 1375 Broadway two and a half years ago, it simultaneously bought the fee ownership from Chedward Realty Corp. and the long-term net lease from Statecourt Enterprises Inc. The company then consolidated the positions into fee simple ownership after the deal closed. Savanna is currently marketing about 80,000 square feet of available office space, including a penthouse with a wraparound terrace.
For Mesa West, the first-mortgage loan marks the first in its new lending program “focused on financing core commercial real estate assets,” said Raphael Fishbach, Mesa West principal with the company's New York City office, in the release. Fishbach adds that the new program complements its traditional platform of bridge loans on more transitional assets.
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