The Kaufman Group didn’t must look far to discover a purchaser for its boutique workplace constructing within the Flatiron District.
The Kaufman Group and AXA Monetary bought the 137,000-square-foot property at 40 West twenty fifth Avenue to Kaufman Investments — an affiliate of the father or mother firm — and Two Sigma Actual Property for $52 million, the Business Observer reported. The deal, which got here as the results of a lender-directed sale, works out to $380 per sq. foot.
A three way partnership of the Kaufman Group and the French insurance coverage agency purchased the property from Japanese funding agency Unizo Holdings in 2019 for approximately $120 million, representing one in all Unizo’s ultimate exits from New York Metropolis actual property. They pulled a $76 million acquisition mortgage from MetLife for the deal.
The drop in worth — by greater than half in seven years — exemplifies the difficulties skilled by the Manhattan workplace market for the reason that pandemic, outdoors of the highest trophy properties.
Kaufman Investments president Michael Kazmierski didn’t instantly reply to a request for remark from The Actual Deal.
A Newmark staff together with Adam Spies, Avery Silverstein and Brett Siegel negotiated the deal.
The property is 80 p.c leased; the highest two tenants, Wasserman Media Group and Hiya Contemporary, every occupy 22,000 sq. ft. Different tenants embody GoodRx Holdings, Cosette Fifth Avenue and Chico’s Retail Providers. There’s additionally 15,000 sq. ft of retail area.
In July 2023, Kaufman Investments partnered with Beacon Capital Companions to purchase 875 Sixth Avenue in Midtown South for $92.5 million. The 265,000-square-foot constructing, on the northwest nook of West 31 Avenue, was solely 65 p.c occupied on the time.
Two years in the past, in the meantime, Two Sigma purchased a 269,000-square-foot industrial campus outdoors Phoenix for $51.6 million. The vendor was Germann Street Land Growth, an affiliate of American Nationwide Insurance coverage.
Learn extra
Unizo strikes deal to sell one of its last New York properties
Kaufman Investments, Beacon Capital make $92.5M Chelsea buy
Two Sigma buys 11-building industrial park outside Phoenix for $52M
