Savanna buys 245 & 249 West 17th

­ Street from Atlas Capital GroupManhattan, NY Savanna, a New York-based real estate private equity and asset management firm, has acquired 245 & 249 West 17th St., two adjacent loft-style buildings in Chelsea, totaling 284,000 rentable s/f. The transaction was part of a structured deal with Atlas Capital Group, who had originally executed an agreement in November 2010 to purchase the fee simple interest in both properties. That agreement was subject to an extended closing period contingent on the building being delivered vacant this year. Constructed in 1902 as the original dry goods warehouse and wagon house for the Siegel Cooper department store, 249 West 17th St. is a six-story, 145,000 s/f building featuring 24,000 s/f floor plates. 245 West 17th St. was built in 1909 and is nearly identical in total s/f but features 12 stories of 12,000 s/f floor plates. There is also a combined retail footprint of 40,000 s/f for both properties,. Savanna will undertake an extensive capital improvement program to create an entirely new infrastructure within the buildings. The $21 million capital improvement program will include full building mechanical upgrades and brand new elevators and lobbies, as well as façade and roof refurbishments, with the potential for a tenant rooftop amenity at 249 West 17th St. "We view 245 & 249 West 17th St. as very timely and unique opportunities for the types of tenants who identify with the benefits, both tangible and intangible, of being a part of this Chelsea/Meatpacking community," said Kevin Hoo, a VP at Savanna. "We will implement a plan to install brand new systems, while preserving and enhancing the loft-style aesthetic, including original hardwood floors, exposed ceilings and the open-architecture collaborative workspace." Newmark Grubb Knight Frank has been appointed as exclusive agents for both properties. The team of David Falk, Peter Shimkin, Danny Levine and Nick Berger will oversee office leasing while Jeff Roseman and Amy Zhen will market the significant retail offering at the properties. "245 & 249 West 17th Street are the ideal type of building for this location, which is currently at the heart of the sweet spot in the Midtown South leasing market. These buildings will provide exactly the kind of space today's exciting, growing companies are looking for," said David Falk, a Principal and President of New York Tri-State Region at Newmark Grubb Knight Frank. Brian Ezratty of Eastern Consolidated was the sole broker in the transaction. The buyers were represented by the law firm of Cole, Schotz, Meisel, Forman & Leonard, P.A, as well as Ackman-Ziff on debt capital sourcing. The Sellers were represented by the law firm Fried, Frank, Harris, Shriver & Jacobson LLP. This purchase brings Savanna's Manhattan office portfolio to more than four million square feet. In 2012 Savanna acquired 2 Rector Street, 576 Fifth Avenue, 15 East 26th Street and the retail condominium at 465 Broadway, and in 2011 acquired 100 Wall Street, 80 Broad Street, 5 Hanover Square, 31 Penn Plaza as well as 21 Penn Plaza, in a joint venture with the Feil Organization. Savanna is successfully modernizing and leasing up those properties. This transaction is the third by Atlas Capital Group in the area. In October, the company announced that it had sold 635 & 641 Sixth Avenue to SL Green.