Kaufman Investments and Two Sigma Real Estate Buy 40 West 25th Street NYC Office for $52M

Kaufman Investments and Two Sigma Real Estate acquired 40 West 25th Street, a 137,000-square-foot boutique office building (including 15,277 SF of retail) in Midtown South Manhattan, for approximately $52 million. The sale was a lender-directed transaction, as the prior ownership (Kaufman Organization and AXA Financial) had purchased the property in 2019 for approximately $120 million ($880/SF) with a $76 million MetLife acquisition loan. The current price represents a 57% discount to the 2019 purchase price. The building is approximately 80% leased, with Wasserman Media Group and HelloFresh as the two largest tenants at 22,000 SF each, alongside GoodRx, Cosette Fifth Avenue, and Chico's Retail Services. - Kaufman Investments: A different Kaufman entity from the prior Kaufman Organization; Michael Kazmierski is president and principal. - Two Sigma Real Estate: Real estate arm of quantitative investment firm Two Sigma. - Newmark: Sold the building through its capital markets team led by Adam Spies. No new acquisition financing details disclosed for the current transaction. The 2019 purchase carried a $76 million MetLife loan.