Savanna is hit with more distress in Manhattan’s beleaguered office market.

On Wednesday, Wells Fargo filed a foreclosure suit against Savanna at 521 Fifth Avenue near Grand Central Terminal, Crain’s. reported. The lender plans to sell the 39-story, 460,000-square-foot tower to recoup losses on the property.

The bank says Savanna is delinquent on a $242 million loan backed by the property, which includes an Urban Outfitters store and an Equinox gym, in addition to office space. The loan was originally due in June 2021, according to the lawsuit, but Savanna received three extensions that took the loan through June.

The loan is part of a commercial mortgage-backed security. Wells Fargo provided the loan to finance Savanna’s purchase of the property from SL Green in 2019; Savanna paid $381 million for the building.

The property is 77 percent occupied, according to a Trepp report. There are at least two floors available for rent, Savannah’s website shows. Equinox, which occupies more than 5 percent of the building’s space, is locked into a lease through 2035.

While Wells Fargo filed its pre-foreclosure action, it is also in the process of trying to resolve the defaulted loan, which was transferred to special services in August.

Savanna has not commented on the lawsuit and has yet to file a response.

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Savanna is one of New York City’s largest office investors, but has faced problems in its portfolio in recent years, defaulting on debt and struggling to make loans. In June 2023, he transferred a 40% stake in 110 William Street to his partner.

A few months ago, Savanna agreed to sell 360 Lexington Avenue to Joshua Zamir’s Capstone Equities and AmTrust RE for $65 million, about a third of what Chris Schlank and Nick Bienstock’s Savanna paid for the office building, and 270,000 square meters of retail in 2019. .

— Holden Walter-Warner