Savanna Eyes Tech, Fashion Tenants for Chelsea Acquisition

Institutional real estate private equity firm Savanna expects tenants for the two buildings it purchased in Chelsea to span the social media, advertising, IT and high fashion industries. Savanna acquired 245 and 249 W. 17th St., two adjacent classic loft-style buildings in the heart of Chelsea, totaling 284,000 rentable square feet. The purchase price was not disclosed; industry data indicate that Savanna has paid in the low-to-mid $400s per square foot for comparable Midtown South properties over the past year, which would put the value of the deal north of $100 million.

The transaction was part of a structured deal with Atlas Capital Group, which had originally executed an agreement in November 2010 to purchase the fee simple interest in both properties. The deal brings Savanna’s Manhattan office portfolio to more than four million square feet.