Savanna obtains an acquisition loan for the 1375 Broadway office


Chris Schlank and Nick Bienstock of Savanna with 1375 Broadway (Credit: Google Maps)

The private equity fund closed its $ 435 million purchase of 1375 Broadway from Westbrook Partners last week, Commercial Observer reports. In May, The real deal reported that the deal could slow Savanna’s fundraising efforts.

To complete the transaction, Savanna secured $ 388.5 million in financing from a consortium of lenders including Brookfield Real Estate Finance, investment firm Declaration Partners and two entities related to Deutsche Pfandbriefbank and Aareal Capital Corporation.

Brookfield initiated senior and mezzanine debt, syndicating $ 200 million of senior debt to German entities, and kept $ 103.5 million of mezzanine debt on its books.

Declaration Partners, which is backed by Carlyle Group co-founder and executive co-chairman David Rubenstein, has taken an $ 85 million stake.

Savanna previously owned the Garment District building, paying Chedward Realty Corporation $ 135 million for the property in 2010. Savanna sold it to Westbrook in 2015 for $ 310 million.

The sale and financing of the transaction has been negotiated by Cushman & Wakefield. [CO] -Erin Hudson


About Author

Comments are closed.