Cirrus buys $105M note secured by Savanna Midtown West office building

Cirrus Real Estate Partners through the entity Cirrus Real Estate Funding Six LLC bought a note with an original principal of $105 million from Cottonwood Group secured by Savanna’s newly built class A office building (O4) The Six at 106 West 56th Street in Midtown West, Manhattan.
It was not clear if this was a standard note sale or some other kind of refinancing. Cirrus and Savanna did not immediately respond to a request for comment.
The deal closed on November 17, 2023 and was recorded on November 29, 2023. The prior lender was Cottonwood Group which held debt that had an original loan amount of $105 million.
The property has 87,573 square feet of built space according to a PincusCo analysis of city data.
The signatory for Savanna was Nicholas Bienstock. The signatory for Cirrus Real Estate Partners was Joseph McDonnell.

The property

The office building in Midtown West has 87,573 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,020 square feet. The zoning is C6-6 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $37.4 million. The most recent loan totaled $105 million and was provided by Cottonwood Management on September 10, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $3,550 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 18, 2020. On the lot, there was one new building construction project for a 75,083 square-foot B building. The project was submitted by Savanna and filed by Eric Desimone with plans filed March 28, 2017 and permitted June 29, 2018.

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 21.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 29 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the eight commercial properties representing 1,275,201 square feet of the 1,456,704 square feet. The largest owner is Zucker Organization, followed by Waterman Interests and then Sol Goldman Investments.
On the tax block, there were two new building construction projects totaling 289,115 square feet. The largest is a 208-unit, 214,032 square-foot 70 building submitted by Extell Development and filed by David Rothstein with plans filed April 14, 2023 and it has not been permitted yet. The second largest is a 75,083 square-foot business (B) building submitted by Savanna and filed by Eric Desimone with plans filed March 28, 2017 and permitted December 20, 2017.

The majority, or 43 percent of the 1.5 million square feet of built space are office buildings, with elevator buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Savanna owned at least 10 commercial properties in New York City with 2,202,860 square feet and a city-determined market value of $484.8 million. (Market value is typically about 50% of actual value.) The portfolio has $766.4 million in debt, with top three lenders as Deutsche Pfandbriefbank, PIMCO, and Aareal Capital respectively. Within the portfolio, the bulk, or 85 percent of the 2,202,860 square feet of built space are office properties, with O4 properties next occupying 15 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.

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