Savitt Partners nearly doubles debt to $55M on office property in Garment District

Savitt Partners through the entity RS Realty SPE 530 LLC as borrower signed a loan agreement with lender Morgan Stanley Bank, N.A. valued at $55.0 million for 1 parcel, including the tax class office building tower type with 20 or more stories (O4) at 530 Seventh Avenue in Garment District. The deal closed on February 26, 2021 and was recorded on March 29, 2021.
The property contains a total of 408,130 square feet of built space.
The average loan per buildable square foot is $135.

This is a refinance of the fee position. Both the fee and ground are controlled by Savitt Partners, though there is a ground lease that runs to 2049. This refinance includes a $25 million gap loan. The prior debt of $30 million given in 2011 by the New York State Teachers’ Retirement had been secured by both Savitt’s fee and Savitt’s ground lessor’s interest, but the ground lessor’s interest was satisfied as of the date of the new loan and no longer has any debt.
Over the past five years, there have been 36 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $1,000.0. There were 35 renovation/alteration projects (A2) applied for with a total estimated value of $3,833,915.

Direct link to Acris document. link