Savanna completes largest fundraise to date

Savanna has held a final closing for its Savanna Real Estate Fund IV, raising $591 million. The close was held less than 12 months since the fund’s initial closing.

The closing represented the culmination of Savanna’s largest fundraise to date, as Fund IV achieved the upper end of its initial target of $500 million to $600 million and is more 30 percet larger than the prior fund in the firm’s value-add series.

Investors include a broad cross section of public and private pension funds, insurance companies, high net worth family offices, foundations, and wealth management companies from North America, South America, and Europe.

Fund IV will be focused exclusively on investments in the five boroughs of New York City and will be a continuation of the firm’s strategy to acquire underperforming, older properties and add value through strategic capital improvements and leasing efforts.

To date, Fund IV has invested in two Manhattan properties, 31 West 27th Street and 19 West 44th Street.

Savanna acquired 31 West 27th Street, a 12-story, 144,500 square foot office and retail building in NoMad, in July and plans to implement renovations to the lobby, retail storefront, building systems, façade, roofs, and sidewalk vault. At 19 West 44th Street, an 18-story, 303,943 square foot office building in Midtown acquired in October, Savanna will invest in a new lobby and entrance as well as upgrades and renovations to the building systems, roof, façade, MEPs, restrooms, and corridors. In conjunction with the planned capital improvements at both properties, Savanna will launch new marketing and leasing campaigns to reposition the buildings as institutional quality assets within their submarkets.

Park Hill Real Estate served as lead placement agent in raising Savanna Fund IV.