Christopher Schlank and Nicholas Bienstock

Even in a difficult office market, the $6.2 billion Savanna real estate fund continues to excel. 

2023 was a year of strategic maneuvering. The firm restructured more than $334 million in outstanding debt on 110 William Street — a 32-story, 930,000-square-foot office building in Lower Manhattan’s Financial District — after securing a 650,000-square-foot lease with the New York City Department of Citywide Administrative Services. (Savanna was, in fact, awarded Commercial Observer’s Deal of the Year Award last year for 110 William Street.)

In 2023, the firm utilized its experience and relationships with lenders to complete restructurings of more than 4.5 million square feet of commercial space. 

“We have focused on completing workouts and restructurings on many of our New York City assets, bringing in fresh capital and extending the maturities of our loans to bridge them to a better, more stable and more liquid market,” Nicholas Bienstock, who leads the firm with Christopher Schlank, said in an email. 

Since 2006, the vertically integrated real estate investment manager has invested over $5 billion in total capital across approximately 17 million square feet of real estate, largely in New York City. Meanwhile, in February 2024, the firm announced the launch of Savanna Advisory Services, a fee-based restructuring advisory unit for lenders and other market participants.  

“Very few lenders have the capacity in-house to take back assets, develop a new business plan to protect and build value over time at the asset level, and then execute that plan,” said Bienstock. “We can do all of that on their behalf.”   

Moreover, Green Street reported in March 2024 that Savanna has launched a fund to purchase distressed office properties that carries a $1 billion fundraising target. Savanna has already raised $50 million in equity for the fund and would put 5 percent to 20 percent into each purchase, according to Green Street. 

Savanna declined to comment on the new fund for this issue. 

“Critical to long-term success in CRE investment is not just dealing effectively with problems, but also seeing that crisis and opportunity are opposite sides of the same coin,” said Bienstock, speaking to the broader market. “Some of our very best investments as a firm have been made during times of crisis.”