New York, NY – January 6, 2011 – (RealEstateRama) — Savanna and Monday Properties announced today the closing of a $58 million loan for 386 Park Avenue South. The new partners of the 20-story, Art Deco office building additionally announced that Chase Bank has signed an 11-year lease renewal of its 12,000-square-foot retail space.
The $58 million loan, provided by PCCP, LLC, will finance a broad capital improvement plan that includes new windows, new elevator cabs, new common corridors, renovated restrooms and updated building systems. These significant upgrades coincide with the leasing of 13,000 square foot full floors and new high quality prebuilt units that will allow immediate occupancy for smaller to mid-size tenants.
Adam Spies of Eastdil Secured represented ownership in this financing.
“386 Park Avenue South is a high quality office property located in the heart of the vibrant Midtown South neighborhood with great access to transportation. The completion of this recapitalization will launch a major building improvement plan to enhance 386’s appeal to its existing and potential tenants,” said Christopher Schlank, a Managing Partner of Savanna.
“We are delighted to work with Savanna and Monday Properties to recapitalize this highly attractive property in Manhattan. This is exactly the type of investment that PCCP Capital I, our venture that focuses on providing first mortgages to owners with value-added business plans, is targeting in markets across the nation,” said Yon Cho, a Partner of PCCP, LLC.
The building, which features a recently renovated lobby and building entrance, will commence the new capital improvement program in early 2011. Realizing the first benchmark of its revitalization plan for 386 Park Avenue South, Savanna and Monday Properties additionally announced today that Chase Bank signed an 11-year renewal of its 12,000 square foot retail space. Chase has occupied its branch on the northwest corner of East 27th Street and Park Avenue South since 1970.
Chase Manhattan Bank is part of one of the oldest financial institutions in the United States with a history dating back over 200 years. JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.
“The Chase branch at 386 Park Avenue South has been a valued community amenity for over 40 years. Whether partnering with one of the largest financial institutions in the world, or a small growing firm, Monday Properties is proud to offer the same first-class services to help our tenants grow and thrive,” said Brian Robin, Chief Operating Officer of Monday Properties.
David A. Green and Steven Soutendijk of Cushman & Wakefield represented Chase in the transaction. Jordan Berger of Monday Properties represented ownership.
About Savanna
Formed in 1992, Savanna is an institutional real estate private equity firm and asset management company based in New York City. The firm pursues opportunistic real estate equity and debt assets throughout the northeastern United States with a focus on directly owning and operating properties in the New York City and Washington, D.C. metro areas. Since inception, Savanna has invested in over 13 million square feet of real property across multiple asset classes and locations.
About Monday Properties
Monday Properties is a dynamic real estate investment firm that operates each property within its portfolio. Founded in 1998, the company primarily focuses on two of the world’s leading real estate markets: New York City and the greater Washington, DC metropolitan area. Since 2002, Monday Properties has completed over $7.75 billion in transactions representing over 17 million square feet. Monday Properties co-invests its own capital alongside its partners and investors, creating a clear alignment of interest and an incentive to realize value.
About PCCP, LLC
PCCP, LLC is a premier real estate private equity firm focused on commercial real estate debt and equity investments. PCCP has over $6 billion under management in multiple closed-end funds and joint ventures with institutional investors. With 33 investment professionals and 55 employees across four offices located in New York, San Francisco, Sacramento and Los Angeles, PCCP invests throughout the United States. Learn more about PCCP at www.pccpllc.com.
