Sales Beat

Princeton International Properties Pays More Than $100M for 104 West 40th Street

Princeton International Properties has purchased 104 West 40th Street from Savanna for just over $100 million, The Commercial Observer has learned.

The 210,000-square-foot Midtown Manhattan office building is located steps from Bryant Park on 40th street and Broadway.

Savanna purchased the 20-story glass and steel landmark in 2010, refurbishing it with renovated elevators, building systems, an improved lobby – and a strategy of re-leasing the vacant space at market rents.

104 West 40th Street

104 West 40th Street

Rents in the building run from the low $50’s per square foot up to the $70’s in tower floors, having increased roughly five to 10 percent since renovations were made, said Paul Amrich of CBRE, who along with Neil King was retained to market the building.  The duo have worked with a succession of three different owners at the property over the last four years.

“The lobby is very powerful, with extremely high ceilings, beautiful, original stonework, and a glass façade,” Mr. Amrich said.  A contemporary mural by artist Sarah Morris out of London appears on the eastern side of the lobby, he added.

Savanna purchased the defaulted first mortgage on the property from ING in early 2010, subsequently taking control of the property through a negotiated agreement with the borrower.  City records confirm the sale and show that Savanna ultimately paid the previous owner, Principal Real Estate Investors, $64.5 million for the property in August of 2010.

Adam Spies and Kevin Donner of Eastdil Secured represented the seller in the latest sale, though they were not immediately available for comment.   It wasn’t immediately clear if the seller worked through a brokerage, and Savanna and Princeton International Properties could not be reached for comment.

The building has three vacant floors on the market, including a tower floor, and Mr. Amrich and Mr. King have leased 75,000 total square feet since they began working on the building.  Floor plates range from 6,000 square feet on tower floors to 15,000 square feet at the base.

“This property has a very boutique feel, just steps from Bryant Park,” Mr. King said.  “It also has somewhat smaller floor plates, which is rare and really sets this apart.  The new owner will be very happy with this asset.”

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