Stellar Management and Savanna R.E. Fund recapitalize 2 Rector St.

A joint venture between Stellar Management and Savanna Real Estate Fund I, LLC (Savanna) has successfully recapitalized the lower Manhattan office tower located at 2 Rector St. The strategic recapitalization, which effectively recasted the mortgage, puts a structure in place that provides for the building's near-term leasing prospects and longer-term stability. Both firms have committed fresh capital towards re-tenanting the building. A portion of this equity will be earmarked for current and future tenant improvements and the fulfillment of all brokerage commissions. "Today's news marks the beginning of a new chapter for 2 Rector Street," said Stellar Management founder Larry Gluck. "This property, like the entire Manhattan office market, has dealt with setbacks in recent years. But our ability to invest in the property and attract new tenants has only been strengthened." "Our marketing efforts at 2 Rector St. will significantly benefit from this strategic transaction," said Karim Demirdache, who led the recapitalization effort and negotiations for Savanna. Pre-built units will range from 4,000 to 7,000 s/f, according to Mitch Konsker of Cushman & Wakefield. In addition, an architect has been assigned to assist all new tenants on build-outs.