NEW YORK CITY-The Kaufman Organization has acquired 27–35 W. 24th St. in the heart of the Flatiron District for approximately $55.5 million, according to a release. Prince Realty Advisors advised Kaufman on the purchase from JH Management Co., which in turn was advised by Massey Knakal Realty Advisors.
Built in 1914, 27–35 West 24th is an 11-story, 120,000-square-foot office building between Fifth Avenue and Avenue of the Americas, just off Madison Square Park. Kaufman plans to refurbish, rebrand and reposition the building over the next several years. The planned $2.5-million capital improvement program includes upgrades to the lobbies, elevators and building infrastructure.
The update will focus on adding creature comforts to the building, especially on the technological front, says Grant Greenspan, a Kaufman principal and head of leasing, in an interview with GlobeSt.com.
“Much like our building at 100-104 Fifth Ave., the type of tenant in this neighborhood requires Internet connection, redundancy, etc.,” he says. “We also will put in the technology for tenants to swipe their ID cards in the elevator to go directly to their floor.”
Kaufman also will convert a freight elevator to one for passengers and it will install central air-conditioning. “Window units are a detractor for a certain type of tenant,” Greenspan says. “My goal is to attract companies that are accustomed to a class A type of office building who was paying a rent that became too high and can now pay rent in the mid-$50,000s yet not feel like it’s a big step down.”
Greenspan, Loren Biller and Ian Norris of the Kaufman Organization will be the exclusive leasing and managing agents for the building. The leasing team will launch a building website to market the facility through digital channels. The website will offer brokers and prospective tenants downloadable floor plans and photos of spaces. It will highlight neighborhood amenities—such as area restaurants, shopping, recreation and even hotels—and transportation options for potential tenants, the release says.
Greenspan tells GlobeSt.com that Kaufman has used the web as a marketing tool effectively in the past with the site www.100-104fifth.com. Kaufman will work to replicate the existing site, which may be tough for competitors to copy, since it’s developed by in-house staff.
“It will have the stack plans, floor plans and other information, which creates an ease of selling for someone on the West Coast or even in another area of the city,” he says. “This puts the answers to questions that might be asked of a broker right at their fingertips.”
Kaufman will home in on companies in new media, publishing and software development by advertising on tech-focused blogs such as Business Insider, Entrepreneur and Mashable, according to the release. He also plans to send e-blasts to the broker community, he says, and will establish a link to the area’s Business Improvement District, which just happens to be headquartered at 35 West 24th St.