Savanna Buys Ground Lease for 430 West 15th Street From Invesco

Invesco has finally offloaded a Class A office property in Manhattan’s Meatpacking District — unsurprisingly, for a significant loss.

The investment manager has been shopping for a buyer for the ground lease on 430 West 15th Street since at least June 2023 with the expectation that it would not even come close to breaking even. Invesco ultimately found a buyer in Savanna Real Estate Fund.

The 100,000-square-foot property that had been converted from a parking garage was sold for $85 million, a far cry from the $150 million Invesco paid the Teachers Insurance and Annuity Association (TIAA) for the property in 2018, Traded first noted.

The deal was an all-cash transaction, and the building attracted a lot of attention from potential buyers, according to a source with knowledge of the deal. 

Savanna and Invesco did not immediately respond to requests for comment while Gary Phillips, Will Silverman and Jeff Organisciak of Eastdil Secured, who negotiated the transaction, declined to comment.

TIAA acquired 430 West 15th Street in 2016 through a 99-year ground lease. The property is still rented out to concert promoter and venue operator Live Nation, but it’s unclear if it still reigns over all eight floors as it did when it took over the space from Palantir Technologies on a sublease.

Mark Hallum can be reached at mhallum@commercialobserver.com.