Savanna Takes Control at 2 Rector Street
Carl Gaines Oct. 17, 2012, 12:21 p.m.
After several years of being affiliated with the building, real estate private equity firm Savanna has acquired a controlling interest in 2 Rector Street, The Commercial Observer has learned exclusively.
Savanna acquired a portion of the first mortgage at a discount in 2007 and then in 2010 provided a mezzanine loan and worked with owner Stellar Management to recap the building.
According to data from Real Capital Analytics, the first mortgage that Savanna bought in to was $100 million in CMBS, while the 2007 mezzanine loan was $10 million.
Now, plans at the building include a multi-million dollar capital improvement program that will see the lobby, elevators and façade upgraded and modernized, among other improvements.
“Our capital work will transform 2 Rector Street into a modern Lower Manhattan office tower located just steps from the World Trade Center development, complete with highly desirable office suites built to suit our tenants’ needs,” Andrew Fichte, a vice president at Savanna, said in a prepared statement.
Savanna’s acquisition of a controlling interest at the 464,000-square foot, 26-story building brings its Manhattan portfolio to over four million square feet, 1.7 million of which is located downtown.
A Jones Lang LaSalle team headed by Vice Chairman Mitchell Konsker, Senior Vice President Scott Cahaly and Vice President Brian Reiver will handle leasing at the building. Stellar Management, which has retained a minority interest there, will continue to manage the property.
Through their spokespeople Savanna and Stellar Management didn’t return requests for comment on the deal in time for publication.