Sale of Madison Avenue Leasehold led by Lender Comes Up Short

Despite dealing with its own distress issues, Savanna continues acquiring office buildings that the company can purchase at a discount. The New York-based developer, in partnership with Summit Properties, is reportedly in contract for the ground lease of 444 Madison Avenue and adjacent 2-story 19 East 49th Street which has remained vacant since 2019 following the closure of longtime tenant Sushiden. Initially offered late last year as a $120 million loan sale by lender Wells Fargo after going into default, the sale was structured in a way that “would have given a buyer a direct path to taking over the property through a deed-in-lieu of foreclosure,” but eventually the bank “arranged a deal to sell the property outright and accept a discounted payoff through a short sale” of $50 million. The leasehold last traded in 2007 for roughly $314 million to reportedly Westbrook Partners; and in 2013 Wells Fargo assumed the $135 million loan encumbering the property from Germany-based Münchener Hypothekenbank EG, providing a newly originated $30 million leasehold mortgage in 2013. Upon closing, the deal will be Savanna’s third purchase within the past nine months of an office building at a discount, having acquired 799 Broadway for $255 million, after Columbia Property Trust and Cannon Hill Capital Partners reportedly defaulted on a $270 million loan; and in February, closed on the $85 million leasehold of 430 West 15th Street from Invesco, having last traded in 2018 for $158.5 million.

Source:    https://therealdeal.com/new-york/2025/09/03/savanna-buying-444-madison-avenue/