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New Office Construction in Chelsea Submarket Trades for $257M

Savanna, Silvermintz Family Divest 167,000 SF, Home to Roc Nation and World School
August 2, 2018
Ramrock Real Estate LLC, a Dallas-based developer, acquired the nine-story office building at 540 W. 26th St. in New York City from a joint venture between New York-based real estate investment manager Savanna and the Silvermintz family's SBM Associates Inc. for $257 million, or about $1,500 per square foot.

The newly-constructed building delivered earlier this year in Manhattan's West Chelsea neighborhood. Savanna Real Estate Fund broke ground on the building in 2015 with Morris Adjmi Architects. It features 15-foot ceilings in the office space, oversized windows, and 9,300 square feet of outdoor space, including a setback on the seventh floor and a private rooftop terrace with skyline views.

It totals 166,810 square feet and is anchored by Avenues: The World School, which occupies 77,900 square feet on the lower four floors, and media/entertainment company Roc Nation in 67,100 square feet on the upper four floors. The ground floor of the building is dedicated to gallery retail space, currently listed with The Manhattes Group LLC's Jamison Weiner.

"Our tenants at 540 West 26th Street quickly embraced our vision for a building that is contextual to its location in West Chelsea and enabled us to lease up quickly. We were able to offer investors a stabilized asset with two high-quality tenants in place, and there was considerable interest in the investment," said Christopher Schlank, founder and co-managing partner of Savanna.

The Newmark Knight Frank leasing team of David Falk, Peter Shimkin, Daniel Levine and Nick Berger represented ownership in leasing the space, including Avenues' pre-lease before construction began.

Adam Spies, Douglas Harmon, Joshua King, Kevin Donner, Adam Doneger and Anthony Pascual of Cushman & Wakefield represented the sellers. Jim Stein of Lincoln Property Company represented the buyer, while Jim Spitzer with Holland & Knight LLP served as legal counsel on the acquisition.

Please see CoStar COMPS #4461804 for more information on this transaction.
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