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Savanna in contract to buy Midtown East office building

Private equity firm is buying 360 Lexington in the low $180M range

Savanna's Chris Schlank and Nick Bienstock with 360 Lexington Avenue (Credit: Google Maps)
Savanna's Chris Schlank and Nick Bienstock with 360 Lexington Avenue (Credit: Google Maps)

Savanna is in contract to buy a Midtown East office building for more than $180 million.

The private equity real estate firm signed a hard contract to buy 360 Lexington Avenue from AEW Capital Management, sources told The Real Deal.

The price is in the low $180 million range, or around $720 per square foot.

Representatives for Savanna and AEW Capital Management declined to comment.

AEW Capital, the real estate investment arm of French investment bank Natixis, put the 26-story building at the corner of Lexington Avenue and East 40th Street up for sale earlier this year.

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The property is 82 percent leased, with several leases rolling over next five or so years. The property’s largest tenant, Webster Bank, expanded to an additional floor in 2017.

A source familiar with the property said it attracted interest from foreign groups as well as several local operators.

An Eastdil Secured team of Brett Siegel, Evan Layne, Gary Phillips, Rachel Humphrey and Alex Scheetz is handling the sale for AEW Capital, which purchased the building in 2008 for $129.5 million. The brokers declined to comment.

Savanna, meanwhile, has been busy buying up properties as of late. The Park Avenue-based investment firm, run by Christopher Schlank and Nicholas Bienstock, closed last week on its $110 million purchase of Flatiron District office property at 24-28 West 25th Street – deal that was marketed by the same Eastdil team handling the 360 Lexington sale.

Late last year it bought another building on the same block for $90 million. And the company just closed on the office building at 521 Fifth Avenue from SL Green Realty for $381 million.

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