Institutional real estate private equity firmSavanna expects tenants for the two buildings itpurchased in Chelsea to span the social media, advertising, IT andhigh 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 notdisclosed; industry data indicate that Savanna has paid in thelow-to-mid $400s per square foot for comparable Midtown Southproperties over the past year, which would put the value of thedeal north of $100 million.

The transaction was part of a structured deal with AtlasCapital Group, which had originally executed an agreementin November 2010 to purchase the fee simple interest in bothproperties. The deal brings Savanna’s Manhattan office portfolio tomore than four million square feet.

“Both buildings are located in the sweet spot of what iscurrently the tightest office leasing submarket in the country,”Kevin Hoo, a VP at Savanna, tells GlobeSt.com.“Additionally, they possess the open-space, high-ceiling loftaesthetic that appeals to the tenants searching for space in thissubmarket and will be significantly enhanced by our capital programwhich will completely overhaul the mechanical infrastructure,elevators and lobbies of both buildings.”