By Corina Stef
The Kaufman Org. expanded its Midtown Manhattan footprint with the acquisition of an 80,000-square-foot office building, marking its eighth purchase in the area since 2010. The firm bought the asset from LCT Associates through a 99-year ground lease and will handle the property’s management and leasing operations.
Upcoming capital improvements
The 11-floor property was originally built in 1907, and previously served as a factory building until its conversion to office space in 1989. Kaufman plans to renovate and reposition the property through a $10 million capital improvement program, which will result in upgraded elevators, fiber optic/telecommunications risers, new plumbing, electrical and HVAC systems and tenant signage. The renovation plan follows the same business model that helped some of the firm’s office buildings become best-in-class assets.
The building is located at 235 Fifth Ave., in the borough’s NoMad neighborhood. It is surrounded by eateries, bars, art galleries, live music venues, fitness centers and hotels. Madison Square Park and several bus and metro stations are situated within walking distance.
Kaufman was represented in-house in securing the ground lease by President Fred Leffel, Principal Grant Greenspan and Principal & Director of Acquisitions Michael Kazmierski. Olshan, Frome and Wolosky’s Thomas Kearns acted as its advisor. Skyline Properties’ Robert Khodadadian and Daniel Shirazi brokered the transaction, while Duval & Stachenfeld LLP’s Samuel Lee and Kim Le acted as advisors for the seller.
Image courtesy of Yardi Matrix