Savanna, along with its joint venture partner, the Silvermintz family, announced the sale of 540 West 26th Street, a newly constructed nine-story, mixed-use building offering Class A office and gallery retail space in West Chelsea neighborhood.
The purchaser, RAMROCK Real Estate, paid $257 million for the property, according to public records.
Savanna and Silvermintz successfully leased the majority of the Morris Adjmi-designed, 166,810 s/f building to Avenues: The World School, which occupies approximately 85,000 s/f, and a media/entertainment company, which will occupy approximately 72,000 ss/f.
The lease with Avenues was signed before construction began, and the lease with the media/entertainment tenant was secured in 2018.
540 West 26th Street pays homage to the West Chelsea neighborhood’s industrial character, boasting a bead-blasted aluminum frame, and interiors showcasing blackened steel, polished concrete, and leather accents on the lobby desk and handrails.
Additionally, the building features 9,300 s/f of outdoor space, including a setback on the seventh floor and a private rooftop terrace with skyline views.
“Our tenants at 540 West 26th Street quickly embraced our vision for a building that is contextual to its location in West Chelsea and enabled us to lease up quickly. We were able to offer investors a stabilized asset with two high-quality tenants in place, and there was considerable interest in the investment,” said Christopher Schlank, Founder and Co-Managing Partner of Savanna.
“We’re extremely pleased with the successful completion and disposition of this ground-up development project with our partner, the Silvermintz family.”
The office space features 15-foot ceilings, oversized windows, 9,300 s/f of outdoor space including a rooftop terrace, and a private entrance.
The Newmark Knight Frank leasing team of David Falk, Peter Shimkin, Daniel Levine and Nick Berger represented the 540 West 26th Street ownership in leasing the space.
The Cushman & Wakefield team of Adam Spies, Doug Harmon, Joshua King, Kevin Donner, Adam Doneger, and Anthony Pasqual arranged and negotiated the sale transaction on behalf of Savanna. Jon Mechanic, Ross Silver, and Brian Helweil of Fried Frank served as Savanna’s legal counsel in the sale.
The purchaser was represented by Jim Stein of Lincoln Property Company, and Jim Spitzer of Holland & Knight served as Ramrock’s legal counsel.
Fried, Frank, Harris, Shriver & Jacobson LLP acted as counsel to Savanna in the sale. The law firm previously represented Savanna in connection with an 70,000 s/f, 18-year lease to Roc Nation for its headquarters and an 85,000 s/f lease to Avenues: The World School for its headquarters at the building.
The Fried Frank team was led by real estate partner Ross Z. Silver and included real estate associates Brian Helweil and Joshua Katz.