Savanna’s 141 Willoughby Street in Brooklyn Enters Foreclosure

Savanna tallied another foreclosure on an office building, this time in Brooklyn.

Its lender, Capstone Equities, initiated a Uniform Commercial Code foreclosure for the equity interest in 141 Willoughby Street, The Real Deal first reported.

Savanna bought the property for $28 million in 2014 and got a $264 million construction loan from PIMCO in 2021 to build a 24-story office building on the site, which previously housed a printing plant. 

However, Savanna struggled to land tenants to take space at the spec office tower and defaulted on the loan in the spring, The Promote reported. Capstone bought the debt from PIMCO in January.

Savanna declined to comment while Capstone did not respond to a request for comment.

The UCC auction was scheduled for May 7 but will now be held June 9, according to TRD.

It stands as another pain point for Savanna, which has faced a number of foreclosures in its recent history. That includes a deal to sell 360 Lexington Avenue to property management company AmTrust RE at a $115 million discount in September 2024.

A month prior to that, the $242 million loan on 521 Fifth Avenue provided by Deutsche Bank in 2019 went to special servicing, and in December 2023 Savanna was handing back the keys of 1825 Park Avenue in Harlem to TPG Real Estate Finance, a “deed-in-lieu” of foreclosure deal valued at $56.2 million.

In August 2022, Savanna and Pacific Oak Capital defaulted on a $349 million loan secured from Invesco Real Estate for 110 William Street in the Financial District, leading Savanna to leave the joint venture while its partner restructured the debt.

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