Savanna has acquired 576 Fifth Avenue, a 72,000 s/f boutique multi-tenant office building on the corner of Fifth Avenue and 47th Street in Midtown.
Savanna initially acquired the defaulted first mortgage and subsequently took control of the leasehold interest in the property in a consensual transaction with the former leasehold owner.
576 Fifth Avenue will undergo an extensive capital improvement program to modernize the building under Savanna’s new ownership.
“Savanna was able to complete this complex, multi-step acquisition by bringing together the former leasehold owner, the fee owner and the lender in a fully co-operative transaction,” said Tom Farrell, senior associate at Savanna.
“We continue to source opportunities to make compelling investments in strategic real estate assets that have been impacted by the financial crisis.”
Savanna’s capital improvement program for 576 Fifth Avenue will include a complete modernization and upgrade of the elevators, selective replacement and repair of the windows, roof replacement, façade restoration, a variety of system upgrades, and common corridor and bathroom renovations.
“Our capital work will transform 576 Fifth Avenue into an attractive Midtown office tower at the gateway to the jewelry district, complete with beautiful, high quality office suites offering an extensive window line,” added Todd Korren, principal and director of leasing at Savanna.
Cushman & Wakefield, Inc. will manage the property, with Joseph Lagano and Robert Sweeney leading the Cushman team. Todd Korren and Tal Masica of Savanna Commercial Services, LLC will be responsible for leasing on behalf of ownership.
The buyers were represented by the law firm of Cole, Schotz, Meisel, Forman & Leonard, P.A.