Savanna
home firm overview investment strategies partners & lenders our team portfolio news contact us

CoStar Group: Savanna Invests in DC Market Debt

06/26/2008

DC-Market-Debt.jpg

Savanna, a New York City-based real estate investment and development fund, acquired the $157.7 million C-Note on the senior mortgage of a 1.4 million-square-foot Rosslyn, VA, Class A office portfolio. Savanna purchased the note at a substantial discount to par value from a New York City-based investment bank that was motivated to move the assets off of its balance sheet.
 
The note is secured by three Class A office buildings in the Rosslyn section of Arlington County, VA: 1000 and 1100 Wilson Blvd., known locally as the "Twin Towers," and 1101 Wilson Blvd. Collectively, the properties are 98% leased by a roster of first class tenants including the US General Services Administration, Northrop Grumman and Raytheon.
 
The Rosslyn submarket has continued to strengthen as it attracts tenants with its proximity to downtown Washington, DC, just across the Potomac River. The office portfolio is owned by Monday Properties, which actively manages all aspects of the buildings. Monday Properties has an extensive capital improvements plan in place, with $22 million earmarked for a full renovation of the 1101 Wilson Blvd. lobby, elevator modernization across the three buildings and additional maintenance. Monday Properties is Rosslyn's largest landlord, owning approximately 30% of the office space in the Rosslyn market.
 
"We purchased a note representing 50% to 67% 'post credit crunch' loan-tovalue backed by the terrific sponsorship of Monday Properties." said Nicholas Bienstock, managing partner with Savanna. "This deal produces equity-like returns for our investors, with substantially less risk."
 
"The note's current debt coverage ratio of 1.25 will likely increase as the existing below-market rents roll to much higher market rents," added Christopher Schlank, also a managing partner with Savanna. "In fact, recent leases have achieved rents that have substantially exceeded our underwriting."
 
Copyright 1997-2008 CoStar Realty Information, Inc. All rights reserved.

« Back | Print Version

More About Savanna

Who We Are
Savanna is a real estate investment and development firm that focuses on opportunistic investment strategies targeting superior risk-adjusted returns on behalf of its institutional investors.

Investment Strategies
Savanna employs opportunistic strategies to invest in middle market real estate assets of the primary asset types including office, retail, residential, and industrial.

Our Team
Savanna's team has a broad base of experience and expertise in valuation, financial analysis, deal sourcing and structuring, property acquisition and disposition strategy, design, development, redevelopment, asset management, accounting, and leasing.

Partners & Lenders
Savanna has invested on behalf of, and in partnership with, many of the premier institutional real estate private equity funds, REITS, and hedge funds active in the United States.

home