The Real Deal reports taht the owners of the Lee Building (next to Metro North’s Harlem Station, on the north-east corner of Park/125) Savanna, are returning the building to their lender.

Savana signed over its 135,000-square-foot building at 1825 Park Avenue in Harlem to its lender TPG Real Estate Finance Trust for a deed in lieu of foreclosure, according to property records and a source familiar with the transaction.

TPG, which provided $54 million in loans to refinance the property in 2019, likely concluded the property today is not worth more than its debt.

Savanna joins Blackstone, Brookfield and RXR, and other office owners who have relinquished properties to their lenders. There are few, if any, office buyers in the market and refinancing is tough because of higher interest rates and lower valuations.

Savanna bought the building in 2015 for $48 million.

The investment firm put the property on the market in 2021, hoping to get $75 million or $555 per square foot. Tenants included 3 methadone clinics run by Mount Sinai and the Metropolitan Transportation Authority. It later sought to refinance, but was unsuccessful.

MMPCIA And The Holidays in Harlem

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