With New Ground Lease, The Kaufman Organization Can Connect Current Building To Fifth Avenue
Kaufman has agreed to a 99-year ground lease at 236 Fifth Ave. with longtime property owner LCT Associates, giving the former control over the 11-story, 100K SF office building with a ground-floor retail component, The Real Deal reports.
Kaufman also has a ground lease for 13-15 West 27th St., which neighbors 236 Fifth Ave.'s 27th Street frontage. With both leases in hand, the company can connect the two buildings, allowing for them both to have a Fifth Avenue address, which brings with it higher office rents.
Kaufman signed its ground lease at 13-15 West 27th St. with Extell Development for $25M, a deal scheduled to run 25 years with an option to extend to 99. In 2015, Kaufman brought on China Orient Asset Management as an equity partner on the building, and Extell sold the land under it to Edison Properties for nearly $39M in 2015.