Savanna has launched a $35 million capital improvement plan at the Falchi Building, a five-story 711,194 s/f office and retail building in the Factory District in Long Island City, Queens.
Falchi will be among the first buildings to complete the repositioning process in a neighborhood that has seen approximately $20 billion of institutional investment into commercial and residential property in recent years.
Savanna’s capital improvements will be focused on modernizing the lobby and common areas, upgrading the building systems, and reconfiguring the retail spaces.
Cushman & Wakefield is leading the leasing campaign for both office and retail opportunities.
“We have devoted considerable time and resources to creating the right plan for Falchi and we’re excited to be underway,” said Andrew Kurd, Director of Savanna.
“Our investment in the lobby and common areas will create a more modern and inviting feel for existing and prospective tenants, and we will also be making significant upgrades to the building systems. These improvements will allow us to reposition the Falchi Building as a best-in-class property in Long Island City while still maintaining many of its attractive physical attributes including loft-style floor plates, large windows and generous ceiling heights.”
Falchi occupies a full city block in Long Island City bounded by 47th and 48th Avenues, between 31st Street and 31st Place, and is less than ten minutes from Midtown Manhattan. The property, which is currently 85 percent leased, houses tenants such as Uber, Lyft, Juice Press, People’s United Bank, Doughnut Plant, Spaces, and TLC/OATH.
Savanna’s lobby renovation will revitalize the building entrance and improve the existing ground floor retail space, a food-focused corridor similar to Chelsea Market.
The lobby and retail corridor work is expected to be completed in early 2018.
Savanna has also arranged a transaction with an existing ground-floor tenant to reconfigure 22,000 s/f of space to optimize the tenant’s retail operation. Additionally, Savanna will upgrade the building’s generator, smoke purge, staircases, egress points, fire sprinkler, and alarms.
Brian Reiver, Director of Leasing at Savanna, said, “Long Island City is an established office market that has seen an influx of major companies from a variety of industries, many of whom qualify for the REAP incentive for tenants moving from Manhattan to Long Island City, which is estimated to provide savings in the range of $15-$20 per square foot.
“This incentive, coupled with the improvements now in progress at the building, will tremendously benefit companies that decide to come to the Falchi Building.”
Mitch Arkin, Joe Grotto, Jr., Haley Fisher, Anthony Cugini, Omar Sozkesen and Remy Liebersohn of Cushman & Wakefield will work closely with Savanna to lease the property’s office space. Mike Azarian, also of Cushman & Wakefield, will head up the retail leasing effort.
Notably, a 95,000 s/f block of space on the Falchi Building’s fifth floor, including a 3,000 s/f penthouse and a potential roof deck addition, will be available in the fourth quarter of 2018. Approximately 150,000 s/f of space is available today.