Kaufman Nabs Midtown Manhattan Ground Lease

236 5th Ave (Yardi Matrix)

The Kaufman Organization, one of New York City’s most affluent commercial real estate investors, has acquired a 99-year ground lease on the property at 236 Fifth Avenue.

This deal, negotiated with property owner LCT Associates, is reportedly valued at $64.5 million and was closed on August 31st, according to documents filed with the city. Marking Kaufman’s eighth Midtown South acquisition in the past seven years, the NoMad office building‘s eleven stories include retail and encompass roughly 65,000 square feet of commercial and office space.

Bearing out the firm’s commitment to reposition assets in the neighborhood and bring to market best-in-class Midtown Manhattan office spaces, Kaufman plans to invest over $10 million in capital improvements, in order to transform the property into a “state-of-the-art office destination.” Upgrade plans include a completely renovated lobby, new plumbing, electrical and HVAC systems, upgraded elevators, as well as an increase to the building’s technical capabilities by installing state-of-the art fiber optic/telecommunications risers.

Kaufman will exclusively handle leasing and managing of the building. Drawing from the experience of past successes, the marketing team will execute a rebranding campaign, which will include an interactive website for the property, a dedicated social media page, and advertising initiatives that will market the building to specific high growth office tenants.