Invesco swallows loss on sale of Meatpacking Office to Savanna

When Invesco hired Eastdil Secured to market the leasehold property at 430 West 15th Street in the Meatpacking District a year and a half ago, the company signaled its willingness to take a significant discount from what it paid in 2018.

It turned out that the tenant was prepared to accept almost half the amount he had spent on the property six years ago.

According to Commercial Observer, Savanna Real Estate Fund paid $85 million to lease the 100,000-square-foot space. The cash transaction was first reported by Traded.

The purchase comes to $912 per square foot. A team from Eastdil Secured, including Gary Phillips and Will Silverman, brokered the deal.

Invesco began marketing the converted parking garage last June, bracing for offers well below the $150 million it paid the Teachers Insurance and Annuity Association for the property two years before the pandemic. Just two years earlier, TIAA paid $107 million.

Live Nation is the tenant for the eight floors of the Class A office building. The company entered into a sublease agreement with Palantir Technologies in 2017.

Savanna recently purchased another dilapidated office property in Manhattan, despite struggling with the fallout from her own pre-pandemic spending spree. Last month, Savanna purchased 799 Broadway in Greenwich Village from Columbia Property Trust for $255 million, or $1,433 per square foot.

That too was an all-cash deal reportedly financed by Greek copper billionaire Telis Mistakidis, an unnamed source told The Promote.

The West 15th Street deal also marked the second time in a matter of months that Invesco suffered a loss on a real estate transaction. In October, Spanish fast-fashion billionaire Isak Andic’s real estate company bought the retail condo at 512 Broadway for $26.9 million, about half of what Invesco paid for the property 14 years earlier.

— Holden Walter Warner

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