The Kaufman Organization and its partners have sold their 11-story office building at 27 West 24th Street in Manhattan’s Flatiron District for $92.5 million to an undisclosed buyer. NGKF Capital Markets was retained to source capital for the New York City-based buyer. NGKF’s Senior Managing Director Garett Stoffels and Managing Director Barry Berkowitz advised the buyer and arranged the acquisition financing.
The Kaufman Organization and its partners, acquired the 125,000-square-foot building in late 2012, at which time they embarked upon a $5.5 million capital improvement program. Upgrades included a renovated facade and lobby with interactive wall display; three passenger elevators with upgraded cab designs; state-of-the-art security surveillance system; security access control system with proximity card reader;; and a building central plant for HVAC.
Over 90% of the leases are at below-market rates, with about 60 percent of them expiring before December 2016.
“We worked diligently and discreetly over several months to advise this buyer on an appropriate capital structure that maximized its opportunity to acquire the property in the face of significant competition,” said Mr. Stoffels.
Mr. Berkowitz added, “We pride ourselves on our ability to work side-by-side with property owners, who seek commercial finance experts that are informed and can work efficiently and confidentially, and ultimately secure the capital needed to meet their financing objectives.”
Photo courtesy of The Kaufman Organization