Savanna has sold off its ground lease at 31 Penn Plaza for $265 million, netting the landlord double what it paid for the site in 2011, Commercial Observer has learned.
The Vanbarton Group closed yesterday on the 18-story Midtown building, which is officially at 132 West 31st Street between Avenue of the Americas and Fifth Avenue, Savanna announced. About two weeks ago The New York Post reported the companies had entered a contract for the sale.
While Savanna declined to provide the sales price, sources familiar with the deal said it was about $265 million. That gives the landlord more than a 100 percent profit after paying $130 million for the ground lease, which runs through 2046, in 2011, according to property records.
A representative from the Vanbarton Group confirmed the sale, but declined to comment.
The landlord spent $20 million on capital improvement at the 90-year-old, 444,000-square-foot building, and has signed new tenants for both the building’s office and retail space.
“Savanna has significantly repositioned the property’s infrastructure and tenant profile,” said Kevin Hoo, a managing director at Savanna, in prepared remarks, “and in the process, restored its attraction and reputation in a submarket that has experienced tremendous growth over the past few years. We are grateful to our entire team of partners and service providers who helped us achieve the turnaround.”
Douglas Harmon, Adam Spies, Joshua King, Adam Doneger and Michael Saclarides of Eastdil Secured represented Savanna in the sale.
The landlord seems to be in the process of raising cash and dumping some of its holdings Savanna last month sold off the 520,000-square-foot 100 Wall Street for $275 million, as CO reported last month. Its also currently marketing its Long Island City crown jewel, 1 Court Square, which the landlord bought a controlling interest in last year.