SISTER ACT: KAUFMAN INKING GROUND LEASE FOR NOMAD OFFICE BUILDING
NoMad ground lease at 236 Fifth Avenue valued at $64.5 million
The Kaufman Organization closed on its long-term NoMad
ground lease at 236 Fifth Avenue, which is valued at $64.5
million. The deal works out to more than $800 per square foot
for the 99-year leasehold on the 11-story, 80,000-square-foot
property .
The Midtown-based landlord is closing Wednesday on a new
99-year ground lease at 236 Fifth Avenue with longtime
property owner LCT Associates, sources told The Real Deal.
Representatives for Kaufman and LCT Associates principal Scott
Chiou declined to comment. Robert Khodadadian and
Daniel Shirazi at Skyline Properties, who sources said brokered
the deal, couldn’t be reached for comment.
The deal gives Kaufman control of the 11-story, 100,000-square-foot office building on the property and access to its
frontage along Fifth Avenue between 27th and 28th streets. The building can be connected to a sister building Kaufman
controls around the corner at 13-15 West 27th Street. Connecting the two could allow Kaufman to market the office space
in both as Fifth Avenue office space, potentially commanding higher rents.
Kaufman controls the leasehold on the 27th Street building through a deal it struck in 2014 with
Extell Development for$25 million, property records show. The term gives the landlord control of the
property for 25 years, with an option to extend the lease to a total of 99 years.
Extell turned around in 2015 and sold the fee position on the property to Edison Properties for $38.8 million.
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