Savanna Fund II REIT has sold the office building
at 5 Hanover Sq. in New York City to the CIM Group for $104 million, or about $326 per square foot.
The 25-story, 318,600-square-foot office building was constructed in 1962 on one-third of an acre in Manhattan's Financial District submarket, between Beaver and Pearl Streets. The asset was 96 percent leased at the time of sale.
The building features steel construction, ground-floor retail, and in 2006 a major building renovation was completed to reposition the asset into a luxury boutique office building. The capital improvement program included a new and relocated lobby, new core facilities including restrooms and elevators, a new two-story glass storefront, and improvements to the electrical, security, and fire/life systems.
This transaction marks the second time in the last three months that Savanna and CIM have come together. In June, Savanna sold 2 Rector Street, a full-block, 26-story, 466,000-square-foot office property in Lower Manhattan, to the CIM Group and Kushner Companies for $140 million, according to CoStar data.
See CoStar COMPS #2765253.
Savanna took control of 5 Hanover Square after it acquired the mortgage on the property in October 2010 during the economic downturn in a note-purchase valued at $51.5 million, according to CoStar data.
See CoStar COMPS #1985992.
Carl Schwartz, Laurie Grasso and Susan Saslow with New York-based law firm Hunton & Williams' real estate practice group advised Savanna on the sale.
Please see CoStar COMPS #2820235 for additional information on this transaction.