The Real Deal New York

Kaufman closes on Midtown South commercial building for $55.5M

December 19, 2012 03:00PM

The Kaufman Organization has purchased a commercial building at 27-35 West 24th Street in Midtown South for $55.5 million, Crain’s reported. Four years ago, at the height of the market, the 11-story property was under contract for $52 million. Thomas Gammino of Massey Knakal, handled the sale and said that in 2008 when the previous sale contract was ready to be signed, Lehman Brothers collapsed, ushering in the recession.

The building measures 94,075 square feet, with 10,000 square feet of retail and 84,075 square feet of storage, Property Shark data shows. Gammino told Crain’s that the building is currently full — the large share of tenants are on short-term leases, meaning the space can be vacated and marketed to tenants who will pay higher rents. Current tenants rent in the $40s per square foot.

Crain’s said that some neighborhood landlords have shot up rents to the $60s and $70s per square foot. [Crain’s]Zachary Kussin