Nightingale pays Extell $28M for Midtown leasehold

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

TRD New York /
Jun.June 21, 2016 03:30 PM

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.


Related Articles

arrow_forward_ios
50 Rockefeller Plaza and Katten's Chris DiAngelo (Credit: Google and Katten)

Katten law firm moving to Rockefeller Center

111 West 57th Street (Credit: iStock)

Another legal door closes for jilted investor at 111 West 57th Street

113-119 East 55th Street and Arthur Zecekndorf of Zeckendorf Development (Credit: Meridian Investment Sales and Getty Images)

These are the details on Zeckendorf Development’s latest residential project

206 West 17th Street, 116 7th Avenue, and Extell Development’s Gary Barnett (Credit: Google Maps)

What rich people in NYC will pay to keep their view: TRD analysis

Extell Development's Gary Barnett (Credit: Getty Images and iStock)

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower

Central Park Tower

Extell just went public with Central Park Tower listings

Such investments have become a critical source of financing for New York real estate projects in recent years. (Credit: iStock)

Preferred equity plays are on the rise, but what’s the catch?

Fashion house Badgley Mischka to take naming rights, two floors at Midtown tower

arrow_forward_ios