Harlem Mixed-Use Building Changes Hands

NEW YORK CITY—Real estate private equity firm Savanna has acquired 1825 Park Ave. in Harlem from Giscombe Realty Corp. in a deal valued at $48 million.

Savanna, which also engages in asset management, plans to undertake what it calls a comprehensive capital improvement program to reposition the property as an institutional quality building. The company did not divulge the projected cost of the capital improvements that will include a lobby and entrance renovation, facade upgrade, HVAC and electrical improvements and renovation of the common areas and restrooms.

The 12-story 135,000-square-foot office and retail building is in Harlem's busy 125th Street corridor. The repositioning of the property is intended to take advantage of Harlem's supply-constrained office market, which contains only onemillion square feet of true institutional quality office product, according to Savanna officials. A comprehensive zoning plan approved by the New York City Council in 2008 has the potential to bring 1.8 million square feet of new commercial, residential and retail space to the 125th St. corridor.

"Harlem is an emerging office market with a significant amount of momentum as retailers and new tenants continue to expand upon this vibrant corridor," says Cooper Kramer, managing director at Savanna. "1825 Park Ave. is a prime location within this market and is well positioned to be a leading commercial property in the 125th Street market under Savanna's ownership."

Jack Bick and Erik Otema of S. Charatan Realty represented Giscombe Realty Corp. in the sale. Giscombe Realty is currently headquartered at 1825 Park Ave. Laurie Grasso and Anthony Bonan of Hunton & Williams served as legal counsel for Savanna in the transaction. Savanna has retained Myles Fennon and Jon Fales of Cushman & Wakefield and Ellen Israel and Greg Smith of JRT Realty Group to handle the office leasing for the property. Jeff Winick of Winick Realty Group will handle the retail leasing for 1825 Park Ave.