S
avanna has acquired the distressed office building at 799 Broadway in Greenwich Village from Columbia Property Trust and Cannon Hill Capital Partners for $255 million. The sale is a significant discount on the property's original value, considering it was sold for less than what its owners owed on the two-year-old building. Blackstone Mortgage Trust administered the all-cash deal, which comes out to approximately $1,433 per square foot.

    The 12-story, 178,000-square-foot property had been struggling to fill space quickly enough to meet debt payments, despite being a Class A office building in high demand post-Covid. It is currently 71% leased, with tenants including Bain Capital Ventures and Tidal. The sale comes as the New York City office market continues to face challenges, with values falling by 35% from the end of 2021 through September.

    Savanna's purchase of 799 Broadway is notable given its own struggles with a portfolio of office buildings acquired before the pandemic. The company recently transferred a stake in another property and agreed to sell one of its assets for significantly less than it paid.