Studley's Heller, Silverman, Negrin and Parker broker $80 million retail condo sale for Savanna; For 14,100 s/f space at 465 Broadway; Deal financed with $42 million from Mesa West

Savanna, a New York-based real estate private equity and asset management firm, has sold the 14,100 s/f retail condominium at 465 Broadway for $80 million. The property consists of 9,400 s/f of at-grade retail space and 4,700 s/f of below-grade space in the residential condominium building also known as 40 Mercer St. Designed by architect Jean Nouvel, the property was developed in 2007 by Hines, Goldman Sachs and Andre Balazs. Savanna acquired the retail condominium in July, 2012 for $57 million in an off-market transaction. The deal was financed with a $42 million acquisition loan from Mesa West Capital and equity from Savanna Real Estate Fund II. The retail condominiums at 465 Broadway, located in the SoHo Historic District, include 75 ft. of frontage on Broadway, 200 ft. of frontage on Grand St., and 45 ft. of frontage on Mercer St. The street level space is 100% leased at below market rates to four tenants: Bose, Wells Fargo, Dermalogica, and Vivienne Tam. "SoHo is primarily recognized for its cast iron buildings that have been converted from industrial use to office, residential and retail. We saw an opportunity because 465 Broadway provides a unique state-of-the-art modern retail configuration within this older retail corridor. The new glass and steel property offers at-grade access, floor to ceiling glass, 18 foot high ceilings, and wide column spacing that is ideal for retail tenants," said Christopher Schlank, managing partner of Savanna. "465 Broadway is great real estate on a highly visible corner in the heart of the SoHo retail market, where rents have grown almost four-fold in the past decade and are 30% higher than at the height of the market in 2007," said Tal Masica of Savanna. Woody Heller, Will Silverman, Eric Negrin, and Daniel Parker of Studley were the sole brokers. "While we were sad to part with 465, it represents an extraordinary return for our investors in both IRR and multiple. We expect that the new owners will also do very well with their investment over time," said Nicholas Bienstock, managing partner of Savanna. The SoHo Broadway corridor is now home to many major national and international retailers and anchored by some of the biggest names in retail, including H&M, Top Shop, Zara, Uniqlo and Prada, which drive an incredible amount of foot traffic along Broadway between Houston and Canal Sts.