Reflecting the low vacancy and rising rents in Midtown South, the recently formed Vanbarton Group, led by investment and advisory specialists Richard Coles and Gary Tischler, is in contract to buy the operating ground lease for 31 Penn Plaza, also known as 132 W. 31st St., for $270 million.
Investment brokerage gurus Douglas Harmon and Adam Spies of Eastdil Secured, marketed the Penn Station-area leasehold on behalf of seller Savanna.
Led by Christopher Schlank and Nicholas Bienstock who target “hairy deals,” Savanna updated the 450,000-foot building with around $20 million in capital improvements after paying $130 million in 2011.
Public documents show the 1997 ground lease runs through 2046 and includes two decade-long option periods to buy the ground with one starting Dec. 31, 2018 for roughly $30 million.
Stay tuned to see what Savanna will do with its war chest. The parties declined comment.
