Savanna raises $510 million to rebuild 5 Bryant Park

Savanna appeared to be out of options on 5 Bryant Park, but has pulled out of a major refinancing of the Midtown office tower.

The company secured $510 million to refinance the 683,000-square-foot office building, the Commercial Observer reported. King Street Capital Management and Blue Owl Capital created the variable rate loan.

An Eastdil Secured team including Rob Turner, Grant Frankel and Ethan Pond arranged the deal, which was first reported by PERE Credit last month.

The refinancing terminates a $463 million commercial mortgage-backed securities loan.

According to CRED iQ, the real estate investment firm previously missed a required balloon payment on the debt, which expired in June. Savanna took out the loan to finance the purchase of the property with a maturity date of June 2020; Savanna acquired the 34-story property from Blackstone in 2018 for $640 million.

The loan included five one-year extensions, each of which was exercised.

At the time of the missed payment, the loan was on a watch list due to a decline in net operating income. According to service comments, Savanna then hoped to close a refinancing deal within 90 days.

In addition to paying down the old debt, Savanna plans to use the proceeds from the refinancing to build an amenity center and improve tenant spaces. The building is currently 80 percent leased, but the landlord has its sights set on an occupancy rate north of 95 percent next year.

Savanna has had to face her own problems, while at the same time continuing to invest more and more in the office market.

In February, the company purchased the leasehold at 430 West 15th Street in the Meatpacking District for $85 million, a sharp discount from the $159 million Invesco paid for the property in 2018.

And last November, Savanna bought the newly constructed office building at 799 Broadway for $255 million after owner Columbia Property Trust defaulted on its $270 million mortgage.

— Holden Walter Warner

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Savanna misses the crucial loan payment at 5 Bryant Park

Bargain hunter Savanna buys Invesco’s 430 West 15th for $85 million

Savanna is purchasing the distressed 799 Broadway from Columbia Property Trust