The five-story, block-wide building at 31-00 47th Avenue was sold by Jamestown. In October, The Real Deal reported that the building was in contract for more than $257.5 million. A spokeswoman for Savanna could not confirm the final sale price.
Eastdil Secured brokered the sale and arranged the financing from Blackstone, according to the release. The debt was originated through Blackstone Mortgage Trust, Blackstone Group’s real estate finance company.
Savanna plans to implement a $35 million capital improvement plan at the property, which includes upgrading amenities and infrastructure, modernizing elevators, renovating the common corridors and bathrooms, and developing new ground-floor retail.
“Our acquisition of The Falchi Building demonstrates our continued commitment to Long Island City,” said Andrew Kurd, a director at Savanna. “We are excited to position Falchi to serve the incredibly robust demand for office space in Long Island City and are looking forward to making additional contributions to the area’s creative culture.”
Jamestown purchased The Falchi Building, which was built in the 1920s as a warehouse, from the Chetrit Group for $81.2 million in May 2012, according to city records. Jamestown then renovated the 711,000-square-foot building, and put in modern offices and new retailers, a la Chelsea Market.
The purchase of The Falchi Building falls in line with Savanna’s investment activity in the outer boroughs over the last few years. The Manhattan-based company bought a controlling interest in the 1.5-million-square-foot Citibank Building at One Court Square in Long Island City in 2014, according to Crain’s New York Business. In January 2015, Savanna purchased the former Schlitz Brewery in the Bushwick section of Brooklyn at 95 Evergreen Avenue with Hornig Capital Partners for $33.7 million.
A spokeswoman for Blackstone did not immediately respond to a request for comment.