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New York

JLL arranges financing, completes sale for New York’s iconic 5 Bryant Park

JLL secures financing for Savanna, represents Blackstone in sale


NEW YORK, May 31, 2018 — JLL's Capital Markets experts today announced the firm completed the financing of Midtown Manhattan's 5 Bryant Park office tower. JLL secured $463 million in acquisition financing on behalf of the buyer, New York-based Savanna. JLL also completed the sale to Savanna on behalf of the Blackstone Group LP for $640 million.

Managing Director Kellogg Gaines and Executive Vice President Aaron Niedermayer led the JLL team on the financing. JLL Executive Managing Director Peter Nicoletti and Managing Director Anthony Ledesma led the firm on the sale.

JLL secures $463 million financing for Savanna

"Having worked closely with Savanna on numerous deals over the years, together we quickly identified the key aspects of this financing that were critical to Savanna executing their business plan and ensuring their vision for the future of the property," said Gaines. "Through an extensive selection process, we received tremendous interest from various types of lenders given 5 Bryant Park's iconic location and the strength of the sponsor."

Located on Sixth Avenue between West 40th and West 41st streets, 5 Bryant Park sits directly on iconic Bryant Park. The 34-story, 683,000-square-foot tower includes 38,306 square feet of retail space and has undergone $107 million in renovations since 2007. The building is currently 97 percent leased.

"The JLL team was intimately involved throughout the transaction and we are thrilled with the result that Kelly and Aaron have delivered for Savanna and our investors," said Cooper Kramer, Managing Director with Savanna. "All parties involved in the financing were focused on achieving a structure that allows Savanna flexibility to follow the positive momentum in the Bryant Park market."

"With in-place rents well below market, Savanna is poised to create significant value at 5 Bryant Park by rolling expiring leases to market," said Niedermayer. "Ultimately, we secured a loan that enables Savanna to unlock the full value of the asset through extremely aggressive pricing, term, structure and prepayment flexibility."

JLL Capital Markets has completed several recent financing transactions for Savanna. The firm closed $100 million in financing for the construction of 106 West 56th Street and arranged a $176 million financing package for the development of Vandewater, located at 543 West 122nd Street in Morningside Heights.

JLL represents Blackstone in $640 million sale

"5 Bryant Park was an exceptionally rare opportunity for a buyer to gain a footing in a high barrier-to-entry submarket," said Nicoletti. "This was a complicated transaction given the asset's size and profile, but we were able to help our client navigate the process and select a qualified buyer from a large field of interested parties."

"The asset provided an ideal mix of contractual cash flow plus medium-term capital appreciation in one of the most resilient submarkets in New York," added Ledesma. "Our marketing process emphasized phenomenal recent leasing velocity, attractive risk-adjusted returns and opportunities to enhance future value through accretive capital improvements."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2017 alone, the firm's 2,000 Capital Markets specialists completed $170 billion in investment sale and debt and equity transactions globally.

For capital markets content, please visit The Investor, an online and mobile app news source providing real-time commercial real estate news to asset buyers and sellers around the world.

For more news, videos and research resources on JLL, please visit the firm's U.S. media center webpage: http://bit.ly/18P2tkv.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with nearly 300 corporate offices, operations in over 80 countries and a global workforce of 83,500 as of March 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.