Lender Lists Savanna’s 360 Lexington For Sale Following Foreclosure Action
By Mark Hallum April 16, 2024 2:49 pm
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Savanna’s 360 Lexington Avenue is up for sale after a period of slow leasing and the lender foreclosing on the property, Commercial Observer has learned.
Savanna bought the 24-story building in 2019 for $180 million from AEW Partners, with the largest tenant occupying only about 30,000 square feet. Its lenders, Barclays (BCS) and PPM America, are now putting the property up for sale.
The lenders provided a $110 million loan in 2019 and foreclosed on the property earlier this year, property records show.
Newmark (NMRK) is leading the sale, according to an offering memorandum viewed by CO.
The 268,554-square-foot Midtown office building near Grand Central Terminal is 60 percent leased, with some of the largest tenants in the building paying rents in the high double digits in a district that has become one of the hottest office markets in Manhattan.
Connecticut-based bank Webster Bank likely has the largest footprint with 30,621 square feet. Asking rent for the space was about $69 per square foot when Webster signed a new 10-year deal in March 2022.
Asking rent across Manhattan was $77.19 per square foot in the first quarter of 2024 while Midtown hit an average of $82.84 per square foot, according to a report from CBRE.
Plaza Construction, which has worked on projects including the Brooklyn Navy Yard, also signed a 10-year deal for 14,405 square feet in December 2020.
Adam Doneger, Adam Spies, Josh King and Doug Harmon are the Newmark brokers listing the property.
Savanna did not immediately respond to a request for comment. Newmark declined to comment.
Mark Hallum can be reached at mhallum@commercialobserver.com.
