Downtown Office Tower Sold for $261M

NEW YORK CITY—Savanna has acquired 110 William St. in a joint venture with KBS Capital Advisors for $261.1 million, or $281 per square foot. The 32-story, 928,000 square foot office tower sits at the corner of William and John streets in the Downtown submarket. The building was put on the market back in August and was 99% occupied at the time.

Savanna and KBS purchased the building from Swig Equities and the Dubai Investment Group. Douglas Harmon and Adam Spies of Eastdil Secured were exclusive advisors for the transaction. Mark Edelstein, chair of law firm Morrison & Foerster's New York real estate finance group, led the team that advised the seller, which included partner Jeffrey Temple and associate Elisa Vega.

Savanna was represented by Laurie Grasso and Susan Saslow of Hunton & Williams in the acquisition and Carl Schwartz of Hunton & Williams in the joint venture with KBS Capital Advisors. Harmon declined to comment; Savanna did not respond to a request for comment.

“Our acquisition of 110 will accelerate the positive transformation of William Street that is occurring as institutional firms continue to buy and upgrade many of the adjacent properties,” says Nicholas Bienstock, managing partner, Savanna. “By investing in and improving the building, we expect to attract the same diverse group of tenants that we have been able to attract to our other Downtown properties.”

Adds Spies, “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 ten years,” says Adam Spies. “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 22% year-over-year increase in rental rates as of first quarter 2014.”

Transportation access to and from 110 William St. is strong, with direct entry from its lobby to the subway and the future Fulton Center, a new major transit hub scheduled for completion this  June. Fulton Center will link eight subway lines and is expected to handle an average of 275,000 passengers per day.

In addition, the World Trade Center Transportation Hub scheduled for completion in 2015 is projected to serve over 200,000 commuters each day. It will connect visitors to 11 subway lines and the PATH rail system. The Hub will rival Grand Central Station in size.

Savanna plans to undertake a comprehensive capital improvement plan at 110 William St. during its hold period, including modernizing the lobby and entrance, renovating the roof and façade, and upgrading bathrooms and corridors. The building reportedly features flexible floor plates, water views and an abundance of light and air.

The 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.