Manhattan, NY Savanna has closed $100 million in construction financing for 106 West 56th St. When completed, the property will bring to market newly constructed office space with boutique floor plates catering to New York’s high-end office users. The new financing package, which was arranged by Kellogg Gaines, Aaron Niedermayer and Douglas Baillie of JLL, consists of a senior construction loan from United Overseas Bank and mezzanine financing from Canyon Partners Real Estate.
The 26-story office building is situated west of Sixth Ave. on 56th St., and three blocks from Central Park. The class A property will be unique to the market, featuring club-like amenities and catering to private investment funds, wealth managers, and family offices. Designed by architect Perkins Eastman, with interiors by Gensler, 106 West 56th St. will total 90,000 s/f with a tiered glass façade punctuated by landscaped terraces.
“106 West 56th St. will offer a luxury office ambience that is truly unique in the market, and distinct from traditional class A product in Midtown,” said Andrew Kurd, director at Savanna. “There is a void in amenity-rich properties that provide appropriate office settings for the highest end tenants. We believe that 106 West 56th St. will surpass the market’s expectations of what an office building can be.” Savanna has already tapped CBRE’s Peter Turchin and Christie Harle to head the leasing campaign.
“New York remains an incredibly attractive space to build high-end office product,” said Gaines. “Lenders both domestic and abroad are comfortable with the city’s dynamics, which made this a competitive process.”
Said Niedermayer, “With floor plates between 2,500 and 4,500 s/f, once built, 106 West 56th St. will offer smaller tenants the opportunity to occupy their own floor – something almost unheard of in this location and in the luxury office market. Despite no pre-leasing, we were able to demonstrate to lenders the depth of the luxury office market and the fact that nothing like this project exists in the market today for smaller tenants.”
This transaction represents the first between Canyon and Savanna. Canyon has a long history of investing in the New York City area, having committed over $637 million in 21 investments through senior loans, mezzanine loans, preferred equity and common equity since 2005.
“Canyon has been an active investor in the NYC market for two decades, and has demonstrated not only deep knowledge of the local market but also the ability to quickly execute this transaction,” said Christopher Schlank, Savanna co-managing partner. “We are excited to have the opportunity to work together on this project.” Savanna expects to commence vertical construction of 106 West 56th St. in early 2018, with completion currently scheduled for the third quarter of 2019.
Savanna’s joint-venture partner on 106 West 56th St. is Atom Assets, a real estate investment platform designed for Asian family offices and high net worth individuals.
The law firm Cole Schotz P.C. advised Savanna.