Savanna Sells Flatiron District Retail Condo for $97.5M After Three Years  

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TH Real Estate, an affiliate of TIAA Global Asset Management’s investment arm Nuveen, has acquired a retail condominium on the ground floor of the 23-story 10 Madison Square West from Savanna, Commercial Observer has learned.

The 20,619-square-foot condo, which is 100 percent leased and is located on Broadway between West 24th and West 25th Streets, traded for $97.5 million, a source with knowledge of the deal told CO. TH Real Estate was drawn to the investment because of the site’s location, according to TH Real Estate’s Todd Rollins.

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“The Flatiron District is one of the most desirable live, work, play areas in Manhattan and is situated in a convenient location on the west side of Madison Square Park,” Rollins said in a statement. “Given its excellent visibility and strong national tenancy, we believe the asset will provide long-term stable income and an excellent return profile and will make a great addition to our urban retail portfolio in New York City.”

Savanna purchased the retail condo from the residential building’s developers, Witkoff and Morgan Stanley Real Estate Investing, for $60 million in 2014 a year prior to completion, as CO reported at the time.

Savanna recently leased 16,000 square feet of the space, including a 4,000-square-foot basement, to PetSmart. And the remaining space, roughly 4,000 square feet, has been leased to another tenant. A spokeswoman for Savanna declined to identify the other tenant it signed on to the property.

“We set out to create an institutional quality, stabilized flagship retail space in this world-class location,” Savanna’s Cooper Kramer said in a statement. “And the Savanna team achieved a terrific outcome for our investors.”  

Cushman & Wakefield’s Adam Spies, Doug Harmon, Adam Doneger and Josh King brokered the transaction.

“There has been continued retail strength in the vibrant Madison Square Park [and] Flatiron submarket, which has become a 24/7 live, work, play neighborhood,” Doneger said in prepared remarks.