The Real Deal New York

Nightingale pays Extell $28M for Midtown leasehold

Ground lease at 20 East 46th reportedly has 27 years left

June 21, 2016 03:30PM
By E.B. Solomont

Clockwise: 20 East 46th Street, Extell's Gary Barnett, Nightingale Group's Elie Schwartz and Simon Singer

Clockwise, from left: 20 East 46th Street, Extell’s Gary Barnett and Nightingale Group’s Elie Schwartz and Simon Singer

Simon Singer and Elie Schwartz’s Nightingale Group acquired the ground lease for a 15-story Midtown office building from Extell Development, according to property records filed with the city Tuesday.

The firm paid $27.7 million for the leasehold at 20 East 46th Street, records show. The lease reportedly had 27 years left when Extell sold it to Nightingale.

Extell paid $17.4 million for the ground lease in 2006 from George Comfort & Sons. Extell first put the leasehold on the market back in 2012, asking $25 million for the property.

Representatives for Nightingale and Extell didn’t immediately respond to requests for comment.

The land is owned by the estate of Sol Goldman via Solil Management Corporation, which manages the assets of the late real estate mogul.

The 87,000-square-foot building, located between Madison and Fifth avenues, is largely leased to medical office tenants. It’s unclear how much of the building is occupied.

Overall, Midtown asking rents increased 2.3 percent to $78.42 per foot during the first three months of 2016, according to Cushman & Wakefield. Class A rents also grew 2.3 percent to $83.54 per foot. The Midtown vacancy rate was 9.3 percent.

The deal at 20 East 46th is about a dozen blocks south of Nightingale’s debut Manhattan purchase. 

Founded in 2005, the Midtown-based firm partnered with Friedland Properties last year to buy a $76 million operating lease at 645 Madison Avenue from TF Cornerstone. At the time, the 157,000-square-foot building had about 36,000 square feet of vacant retail space.

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