American Exchange Buys $200M Note on Savanna’s 1375 Broadway
By Isabelle Durso August 19, 2024 3:58 pm
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Alen Mamrout’s American Exchange Group has purchased the $200 million note for Savanna’s 1375 Broadway, according to city records filed on Friday.
The fashion manufacturing company — which bought the note from investors led by Aareal Capital — will acquire ownership of the Garment District building as Savanna continues to operate the property, a source with knowledge of the deal told Commercial Observer.
Newmark (NMRK)’s Adam Spies, Adam Doneger, Jordan Roeschlaub and Nick Scribani worked on procuring the financing for the deal. Newmark arranged the recapitalization on behalf of all parties, according to the source.
A spokesperson for American Exchange did not immediately respond to a request for comment. Savanna declined to comment. PincusCo first reported the note being acquired.
The note sale is the latest in a string of ownership changes for the property. Savanna initially purchased the building in 2010, then sold it to Westbrook Partners in 2015 for $310 million. Savanna reacquired the 27-story office asset from Westbrook in 2020 for $435 million, CO previously reported. Brookfield Real Estate Finance originated the financing in that deal.
“We’re thrilled to close on the acquisition of 1375 Broadway and to have assembled a strong consortium of lenders and partners who share Savanna’s conviction in the quality of the asset and the potential to build value through and beyond the COVID crisis,” Cooper Kramer, a managing director at Savanna, said to CO at the time.
“This is a terrific asset in an outstanding location, positioned to perform well in the face of any challenging market condition, and we are excited to own it and take it to the next level through our planned improvements,” Kramer added.
Built in 1927 and located between West 37th and West 38th streets, the 511,006-square-foot office property has seen recent renovations to its lobby, retail storefronts and facade, according to its website. The building is occupied by a range of office tenants across a variety of sectors.
Newmark, who is arranging the larger restructuring in the new deal, has also been marketing the office property across the street at 1370 Broadway, the source told CO.
Isabelle Durso can be reached at idurso@commercialobserver.com.
