1375 Broadway Sale Coming?
Savanna scored a $145M refi of the 513k SF, just-renovated 1375 Broadway, opting for lower-priced capital while it leases up the remaining 80k SF. Once stabilized, the owner is likely to sell. (The same is true for this Jenga tower we're working on. We need to share this thing of beauty.)
Mesa West Capital's Russell Frahm (snapped in his office Friday) originated the loan with colleagues Raphael Fishbach and Phil Smith, replacing the low hundreds of millions in principal left on the previous loan with lower-rate financing. Russell tells us Savanna is well positioned to lease up 1375 Broadway now that it's done an extensive capital improvement program and renovation, including a new lobby and retail facade. Another Mesa West/Savanna deal hints at a sale once 1375 Broadway leases up: Mesa West provided acquisition, renovation, and lease-up financing for Savanna's 340k SF 5 Hanover Square in February '11. Now it's 97% leased and on the market. (We can learn from history. It's the same reason we don't spit into the wind.)