The Kaufman Organization, in a joint venture with Goldman Sachs, has closed on the ground lease of 155 West 23rd Street for a reported $45 million.
This is the fifth building from the 14-building former Ring Portfolio that Kaufman has purchased via ground lease from Extell, which paid a reported $800 million for the long-neglected buildings in October 2013. The others are 119-124 West 24th Street; 19 West 24th Street; 45 West 27th Street and; 13 West 27th Street.
In a press release, Kaufman said it will spend around $10 million in a capital improvements campaign aimed at transforming the vacant property into a destination for the TAMI sector.
Kaufman will complete a gut renovation of the property – new plumbing and electrical systems will be installed as will new elevator equipment and cabs. The company will outfit the building with a new HVAC system and state-of-the-art fiber optic/telecommunications risers.
Aesthetically, Kaufman will construct a new entrance, lobby and storefront; install a new roof-deck; upgrade windows and bathrooms; and make extensive repairs to the building’s façade.
155 West 2rd Street is an 82,000 s/f, 12-story office building, located between 6th and 7th Avenues. It was acquired by Kaufman in a joint venture with AIMS Real Estate, a business unit within Goldman Sachs Asset Management via a 99-year ground lease.
Fred Leffel, president of Kaufman New Ventures, led an acquisition team which include Michael Kazmierski, vice-president of Kaufman New Ventures; and Grant Greenspan, principal of the Kaufman Organization. Thomas D. Kearns, partner at Olshan, Frome, Wolosky, acted as the buyer’s counsel. Fried, Frank, Harris, Shriver & Jacobson LLP represented AIMS Real Estate.
David Ash, principal, Prince Realty Advisors, brokered the sale.
Kaufman will serve as exclusive leasing and managing agents for the property.