Savanna can move forward on its ultra-luxury office tower near Billionaire's Row after obtaining a nine-figure construction loan.
United Overseas Bank will be providing a senior loan for the project, and Canyon Partners Real Estate will supply a mezzanine loan, with the total financing package amounting to about $100M for 106 West 56th St. The 26-story, 90K SF boutique office building will cater to smaller tenants with enough money to afford some of the highest rents in the city, like investment funds and wealth managers.
The tiered-glass structure, designed by Perkins Eastman, will have a series of outdoor terraces to go along with Class-A amenities such as a private club and views of Central Park from the 18th floor up. The $150M building is expected to ask for rents ranging from $125 per SF to over $175 per SF for the most valuable spaces, according to Crain's New York Business.
Savanna is developing the building as owner of a 51% share, with the other 49% owned by Hong Kong-based Atom Assets. Demolition of the existing structure is underway, and Savanna expects vertical construction to begin in early 2018 and to be complete in Q3 2019.
An office space catering specifically to the demographic that would fill condos in the nearby Billionaire's Row, 106 West 56th is attempting to compete with big-name projects like Hudson Yards and the World Trade Center with convenience.
"We'll be catering to people who live on the Upper West Side and the Upper East Side who don't want to be in a generic office building," Savanna Director Andrew Kurd told Crain's.
