NEW YORK CITY—The Kaufman Organization has sold 27 W. 24th St., for nearly $93 million, due to the nature of its capital partner, Lubert-Adler, broker Woody Heller, executive managing director and capital transactions group head at Savills Studley, tells GlobeSt.com. "It's an IRR-based fund, which means the return is very time-sensitive."
He continues, “Two times your money in two years versus 10 years is very different so with a partner like that, you're going to be looking to exit [the asset] early, as long as the building is mature enough to realize its potential. I think this building is far enough along.”
Located between 5th and 6th avenues, in close proximity to Madison Square Park, the 11-story office building was purchased in December 2012 for $55.5 million and has since undergone a complete overhaul. The 125,000-square-foot building was sold to an affiliate of Orbach Associates, long term investors and operators of properties in Manhattan, Brooklyn and Long Island."
Heller arranged the deal along with Savills' Will Silverman, also an executive managing director of the capital transactions group. Attorney Thomas Kearns, partner, Olshan, Frome, Wolosky, was of counsel.
Going Forward, Kaufman's Grant Greenspan, principal and Ian Norris, associate, will serve as exclusive leasing agents for the property.
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