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 . 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 i n 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 .