Rendering of 540 West 26th Street - Manhattan, NYManhattan, NY Savanna, the New York-based real estate private equity and asset management firm, and its joint venture partner, the Silvermintz family, have secured $115 million of first mortgage construction financing from Deutsche Bank for their 166,525 s/f development project at 540 West 26th St. and have pre-leased 51% of the building to Avenues: The World School.
RM Capital Management LLC, a N.Y.-based private real estate investment banking and merchant banking firm, arranged the financing on behalf of the JV partnership. Co-managing directors Romano Tio and Marc Sznajderman along with director Steven Weiss executed the deal.
Savanna and the Silvermintz Family will develop 540 West 26th St. into a class A building designed by Morris Adjmi Architects. The nine-story building will cater to office, gallery and community facility tenants.
The JV partnership recently completed demolition of the existing structure at the site and will soon begin excavation. Savanna and the Silvermintz Family pre-leased 85,421 s/f including the entire second through fifth floors as well as portions of the basement and ground floors to Avenues.
The space will be used to meet the expansion needs of their educational program.
“We are pleased to welcome Avenues to 540 West 26th St.,” said Christopher Schlank, managing partner at Savanna. “Avenues is a world-class academic institution with an outstanding reputation which has become a valued partner serving the Chelsea community.”
The remainder of the property will essentially be a building within a building with dedicated elevators, entrances and rooftop amenities for office tenants while the ground floor gallery tenants will enjoy 20 foot ceiling heights with floor to ceiling storefronts and thoughtfully designed layouts.
Savanna and the Silvermintz Family will work with the leasing team of David Falk, Peter Shimkin, Daniel Levine and Nick Berger of Newmark Grubb Knight Frank to lease the office space. Jamison Weiner of Manhattes Group will head leasing efforts for the gallery.
Construction is anticipated to be complete in 2017.
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