The Real Deal New York

Edison buys Ring portfolio building in NoMad for $43M

Extell sold long-term ground lease on property to Kaufman last year

September 25, 2015 02:35PM
By Rey Mashayekhi

45-47 West 27th Street

Jerry Gottesman and 45-47 West 27th Street in NoMad

Jerry Gottesman isn’t cashing out on his Manhattan portfolio yet. To the contrary, the octogenarian chair of Edison Properties just closed on the $43.1 million purchase of one of the office buildings in Gary Barnett’s Ring portfolio.

Newark-based Edison sealed the deal on the building — located at 45-47 West 27th Street in NoMad, between Broadway and Sixth Avenue — on Sept. 10, according to property records filed with the city Friday.

Barnett’s Extell Development bought the 12-story, 54,200-square-foot property for $12.5 million in January 2014, as part of its acquisition of the 14-building Ring portfolio from brothers Frank and Michael Ring.

The property is one of five Ring portfolio buildings that Extell has since sold long-term, 99-year ground leases on to the Kaufman Organization. The most recent one was a 12-story, 82,000-square-foot office building at 155 West 23rd Street.

Newark-based Edison, meanwhile, closed earlier this year on the $870 million sale of a West Chelsea development site to Ziel Feldman’s HFZ Capital Group. The coveted block-long site at 518 West 18th Street, located near the High Line, was one of the priciest-ever development deals in the city.

Gottesman built his Manhattan portfolio over five decades by investing in storage facilities and parking garages. He acquired the High Line site he sold to HFZ Capital for $2.4 million three decades ago.

But while developers like Feldman have angled over Edison’s properties in the hopes of turning them into residential or commercial projects, the acquisition of 45-47 West 27th Street shows Gottesman is still looking to expand his holdings.