The Kaufman Organization today announced the acquisition of 236 Fifth Avenue via a 99-year ground lease. Acquired from, LCT Associates, the 80,000 square-foot, 11-floor property is located in the NoMad neighborhood of Midtown South and will be repositioned via an extensive $10-plus million capital improvements campaign. Kaufman will serve as the exclusive leasing and managing agents for the building.
The acquisition, Kaufman's eighth in Midtown South since 2010, reflects the firm's commitment to repositioning assets in the neighborhood, bringing to market best-in-class office spaces that cater to the influx of forward thinking industries yearning to call the area home.
Fred Leffel, President, Kaufman New Ventures; Grant Greenspan, Principal, Kaufman Organization; and Michael Kazmierski, Principal and Director of Acquisitions, Kaufman New Ventures led the efforts in securing the 99-year ground lease on behalf of Kaufman. Thomas D. Kearns of Olshan, Frome and Wolosky served as the firm's counsel. Robert Khodadadian and Daniel Shirazi of Skyline Properties served brokered the transaction. Samuel S. Lee and Kim Le, both Partners at Duval & Stachenfeld LLP, served as counsel for LCT Associates.
Kaufman will follow the business model that led to the successful repositioning of the Madison Square Portfolio, 100 Fifth Avenue, 27 West 24th Street and 155 West 23 Street. The firm plans to invest significant capital, operating and marketing expertise in order to upgrade the property to a best-in-class, state-of-the-art office destination.
Capitalizing on the success of previous marketing campaigns from past acquisitions, the team will utilize similar innovative techniques to market the building to specific high growth office tenants. Kaufman's marketing team will execute a thoughtful rebranding campaign by launching an interactive website for the property in conjunction with advertising initiatives and a dedicated social media page.
From a building aesthetic standpoint, the firm is completely renovating the lobby, upgrading elevators and elevating the property's technical capabilities by installing its state-of-the art fiber optic/telecommunications risers. Additionally, new plumbing, electrical and HVAC systems will be installed. Once leasing commences, Kaufman plans on offering a significant TI allowance for tenants signing leases at the building.
For more information regarding leasing opportunities please contact Grant Greenspan at 212-471-4340 or GrantG@kaufmanorganization.com, or Jessica Kosaric at 646-421-6420 or jessicak@kaufmanorganization.com.
