A distinct sense of optimism is finally in the air as the world reopens and New York’s most excited developments begin to soar.
On Friday, savannah $ 264 million in home finance for its signature office and retail project 141 Willoughby Street in downtown Brooklyn found out about Commercial Observer.
“Putting together a home loan for a major underpinning commercial development is a significant accomplishment at the best of times, and doing so successfully during an unprecedented pandemic reaffirms our belief in the vision of 141 Willoughby and Savanna’s commitment to New York City.” Cooper Kramer, a manager at Savanna, said. “We are very happy to work with our development partners from Gilbane construction company and SavCon and our lending partners in the development of 141 Willoughby. ”
While the parties refused to designate the senior construction lender, sources outside of the transaction told CO that the debt was owed by PIMCO. The mezzanine financing was provided through funds provided by. were managed CarVal investors. The Senior / Mezz breakdown was not immediately apparent.
JLL‘S Aaron NiedermayeR. and Kellogg Gaines negotiates the financing.
At the end of last year, Savanna broke ground for the state-of-the-art, WELL-certified, 400,000-square-meter, mixed-use project. Foundation work on the Fogarty fingers – The planned construction started in February. SLCE is the executing architect.
Upon completion, the much-anticipated development will feature floor-to-ceiling windows, outdoor patios and 360-degree views. Its design also includes numerous health and wellness functions – more important than ever in a post-COVID world – such as specific room planning to minimize the congestion of residents in public areas and leisure spaces; Touchless access to elevators, lobby turnstiles and the building entrance; increased amount of outside air pumped through the building and a world class HVAC system to circulate clean and healthy air; and antiviral and antimicrobial materials in high traffic areas.
Savanna bought the site from that Institute for Design and Construction In 2014 he paid $ 28 million.
In addition to its competitive advantages from a health and wellness point of view, the 141 Willoughby is centrally located in downtown Brooklyn and can be easily reached by public transport. It sits at the intersection of Willoughby Street and Flatbush Avenue, just blocks away from Barclays Center, the The Jay Street-MetroTech and DeKalb Avenue subway stations are two blocks away and Acadia Realty Trust‘S City Point Brooklyn sits just south of it. The property is also diagonally across from Willoughby Square Park, the one-acre park that runs from the New York Economic Development Company.
“The Downtown Brooklyn neighborhood continues to attract businesses with its great access to talent, fueled by its incredible transport links and proximity to many of Brooklyn’s most desirable residential addresses,” continued Kramer. “We see great potential for further growth in the neighborhood and are confident that modern, high-quality, newly built office and retail space with a special focus on health and wellness will be well received by the market.”
CarVal Investors, a Global alternative investment manager, focused on distressed and credit-intensive assets and market inefficiencies, has invested more than $ 128 billion since its inception in 1987. The company focuses on four credit strategies: corporate bonds, loan portfolios, structured loans, and hard assets.
“We’re excited to fund a project as unique as 141 Willoughby.” Daniel Tanner, a director at CarVal Investors, said. “In the current environment, partnering with strong sponsors and projects is so important and we are thrilled to be working with a team of Savanna’s caliber to create some of the most beautiful, thoughtful spaces in Brooklyn. We believe that the creative, flexible funding we have been able to offer will enable Savanna to achieve this goal. “
And at a time when lending options for large office properties are under scrutiny, the transaction is a positive harbinger for the market and for New York City.
“The completion of a sizable speculative office building loan in New York City during COVID is testament to Savanna and the special project they designed, and also shows the trust that lenders have in the sponsor, project and New York office markets,” said Niedermayer.
“We continue to have a long and productive relationship with the Savanna team and 141 Willoughby is another example of how the collaboration between our two teams produces results that are tailored to optimize each transaction. The lending team created the ideal partnership to make this happen, ”said Gaines.
The 141 Willoughby project is another major post-COVID-19 graduation in the books for Savanna. It is in July closed when buying 1375 Broadway and received a financing package in the amount of 388.5 million US dollars, as for the first time from CO.
A PIMCO spokesman did not immediately respond to a request for comment.