Chelsea Ground Lease Trades at Steep Discount
Savanna has reportedly purchased the ground lease of the roughly 100,000-square-foot property at 430 West 15th Street for $85 million in an all-cash deal. The sale of the leasehold that runs through January 31, 2113, was introduced to the market about 18 months ago by Invesco, recent press announcing the latest sale indicating that the investment management firm was “ready to accept almost half” the $158.5 million paid by the company in June 2018. Located on the border of the Meatpacking District, the site of a former 75,000-square-foot garage had undergone an office conversion and 4-story vertical expansion following the $16.7 million purchase of the leasehold for the unimproved property in 2013 by Atlas Capital Group and the Rockpoint Group; and in 2016, the development team sold the lease for $106.9 million to TH Real Estate, which at the time was the real estate arm of TIAA. Currently event promoter and parent company of Ticketmaster, Live Nation occupies the entire building under a sublease from Palantir Technologies secured in 2014. According to documents posted on city records, the California-based analytics company had secured the 15-year lease that included two 5-year renewal options during predevelopment.