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Savanna, KBS Acquire Manhattan Office for $261.1M

Swig Equities, Dubai Investment Group Sell 928,000-SF Asset
May 5, 2014
New York-based private equity and asset management firm Savanna, in a joint venture with KBS Capital Advisors, has acquired the office building at 110 William St. in New York City from Swig Equities LLC and Dubai Investment Group USA for $261.1 million, or about $281 per square foot.

The 32-story, 928,000-square-foot, 4-Star office tower was originally built in 1957 on three-quarters of an acre in the Insurance District submarket of Lower Manhattan, at the northeast corner of John Street, in a continuously transforming live-work-play destination for the creative, fashion, tech, and media industries.

The centrally-located asset was updated in 2002, and is currently 97 percent leased. It features flexible floor plates, water views, abundant light, and offers direct entry from its lobby to the subway and to the future Fulton Center - a new transit hub scheduled for completion in June 2014 that will link eight subway lines for 275,000 daily passengers.

"Our acquisition of 110 will accelerate the positive transformation of William Street that is occurring as institutional firms continue to buy and upgrade many of the adjacent properties," said Nicholas Bienstock, managing partner at Savanna. "By investing in and improving the building, we expect to attract the same diverse group of tenants that we have been able to attract to our other Downtown properties."

Savanna plans to undertake a comprehensive capital improvement program, to include modernizing the lobby and entrance, renovating the roof and facade, and upgrading common areas. The buyer has retained the Newmark Grubb Knight Frank team of Hal Stein, Andrew Peretz, Adam Leshowitz, and Todd Stracci to lead leasing efforts. Swig Equities will stay on to continue handling property management at the building.

Douglas Harmon and Adam Spies of Eastdil Secured represented the sellers and were the sole brokers in the sale. Laurie Grasso, Susan Saslow and Carl Schwartz with law firm Huton & Williams advised the buyers in the acquisition and the joint venture, while Mark Edelstein, Jeffrey Temple and Elisa Vega with Morrison & Foerster advised the sellers.

"It's an exciting time to be investing in Downtown Manhattan as the long transformation has arrived, with over $30 billion in capital invested in Downtown from both the public and private sector over the last ten years," added Spies. "As Downtown has become the epicenter of the region’s vast pool of high-value, knowledge workers, the demand for office space continues to increase, evidenced by 22 percent year over year increase in rental rates as of first quarter 2014."

Please see CoStar COMPS #3018161 for additional information on this transaction.

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