Savanna Closes 31 Penn Plaza Sale

NEW YORK CITY—Savanna has closed on the sale of 31 Penn Plaza to Vanbarton Group. Industry data sources report that the Midtown office property traded for approximately $265 million, or about $626 per square foot. The parties to the deal declined to discuss the purchase price.

Douglas Harmon, Adam Spies, Joshua King, Adam Doneger and Michael Saclarides of Eastdil Secured represented Savanna in the sale transaction. Attorneys Christopher Price and Adam Kopald of Goodwin Procter served as the seller's counsel.

The building is an 18-story, 444,000-square-foot office building located at 132 W. 31st St. between 6th and 7th Avenues. The property is within blocks of several transportation hubs, including Penn Station, and Port Authority.

Savanna acquired 31 Penn Plaza in 2011 and completed a $20 million renovation. Late last year, the developer refinanced the property with a nearly $141 million loan. Savanna signed a total of 260,000 square feet of leases at the property during its ownership. Additionally, three new restaurants opened at the building.

Mitchell Konsker, Matthew Astrachnan and Matthew Polhemus of JLL led office leasing efforts at the property while Amy Zhen (formerly of Newmark Grubb Knight Frank, now with JLL) and Marc Frankel of Newmark leased the retail space.

“31 Penn Plaza has been a transformative case study that we are proud of,” says Kevin Hoo, managing director at Savanna. “Savanna has significantly repositioned the property's infrastructure and tenant profile, and in the process, restored its attraction and reputation in a submarket that has experienced tremendous growth over the past few years. We are grateful to our entire team of partners and service providers who helped us achieve the turnaround.”

Midtown West features millions of square feet under development, including Related's Hudson Yards, Brookfield's Manhattan West and the planned redevelopment of Penn Station. The submarket has attracted many firms in the technology, advertising, media and information sectors.

“The property is well positioned for the future,” adds Hoo. “We believe Vanbarton will continue to profit from all of the positive trends in the area.”