NEW YORK CITY—The Kaufman Organization has inked a 99-year ground lease for the Cardinal Building in the Hunter's Point section of Long Island City and plans to convert the longstanding industrial building into a modern, “cutting edge” mixed-use property.

The developer reports it has signed the long-term lease with Martial Enterprises for the 65,000-square-foot building at 21-01 51st Ave. Kaufman, which has extensive holdings in Queens, plans to immediately begin work on the conversion of the building for office and retail use. No financial details on the value of the ground lease were released.

Fred Leffel, president, Kaufman New Ventures; Grant Greenspan, principal, Kaufman Organization and Michael Kazmierski, principal and director of acquisitions, Kaufman New Ventures led the firm's efforts in securing the ground lease on behalf of Kaufman. Thomas D. Kearns of Olshan, Frome and Wolosky served as the firm's counsel. Ryan Maltz of Greiner-Maltz served as the broker in the transaction.

Kaufman plans at the Cardinal Building include a fully renovated building facade, new lobby and upgraded elevators and windows. Additionally, new plumbing, electrical, heating and cooling systems will also be installed.

“Kaufman has seen tremendous recent success with the repositioning of properties in Midtown South and is proud to bring this same expertise to Long Island City,” Leffel says. “This is our second investment in Hunter's Point, an area that is quickly becoming a dynamic hub for creative companies. Our strategic investment and reimagining of the Cardinal Building will transform it into a first-class office destination that will attract innovative, cutting-edge firms to this burgeoning area of Queens.”

Kaufman's Kazmierski adds that the repositioned Cardinal Building could serve as a “boutique flagship campus for a creative office, retail or entertainment concept.”

The Cardinal Building is situated between the Paragon and Blanchard buildings also known as “Point LIC” that are currently being redeveloped jointly by the Related Companies and GreenOak Real Estate. Along with Kaufman's longstanding ownership of the Kaufman Astoria Studios, its recent transactions in the Queens borough include the 850,000-square-foot 24-02 49th Ave. (the NYCHA operations building), the UA Kaufman Astoria Stadium, a 14-theater complex, and 35-01 36th St. in Astoria.

In terms of the project's timeline, Kazmierski tells Globest.com, “We will immediately commence the capital improvement program and begin conversations with potential full building users. To the extent there is availability later on in the improvement program, we will consider making space available to single floor tenants.”

He adds that project delivery is expected in the next 12 to 18 months.