135 West 29th Street Case Study
The Haymarket Building 99-Year Ground Lease
75,000 SF
2021
Overview
The $35M, 99-year ground lease of the Haymarket Building at 135 West 29th Street gave long-term owner MFM Properties a tax-efficient income stream that can carry across generations, while The Kaufman Organization took leasehold control of a 75,000 SF Midtown South office building. Robert Khodadadian and Daniel Shirazi completed it off-market, repeating the structure Skyline Properties executed with Kaufman at 236 Fifth Avenue. The Real Deal, Commercial Observer and Crain's New York all covered it.
The Challenge
The owners wanted long-term income without selling the land, which meant a ground lease. That takes a ground tenant with the operating capability and credit to commit to 99 years, plus lease terms (rent, resets, subordination) that protect both the income stream and the reversion value.
Our Approach
Skyline Properties brought the opportunity straight to The Kaufman Organization, the same institutional ground tenant from the firm's $65M 236 Fifth Avenue ground lease, and negotiated the 99-year structure off-market with no public listing. Robert Khodadadian and Daniel Shirazi led the negotiation.
The Result
A $35M, 99-year ground lease. MFM Properties kept ownership and a predictable long-term income stream, and Kaufman took control of the Haymarket Building to reposition it. The Real Deal, Commercial Observer and Crain's New York reported the deal.
Key Takeaways
- Second 99-year ground lease Skyline Properties placed with The Kaufman Organization (after 236 Fifth Avenue)
- Ground lease structure delivered long-term income without a land sale
- Completed off-market by Robert Khodadadian and Daniel Shirazi
- Covered by The Real Deal, Commercial Observer and Crain's New York
Press Coverage
3 articles · 3 outletsCommercial Observer
The Real Deal
Crain's New York
Frequently Asked Questions
Who brokered the Haymarket Building ground lease at 135 West 29th Street?
Robert Khodadadian and Daniel Shirazi of Skyline Properties negotiated the off-market $35M, 99-year ground lease of the Haymarket Building in 2021, placing The Kaufman Organization as ground tenant for owner MFM Properties.
What were the terms of the 135 West 29th Street ground lease?
A $35 million, 99-year ground lease of the 75,000 SF Midtown South office building, reported by Crain's New York as a 99-year structure. The owner retained the land; Kaufman took leasehold control.
How does the Haymarket deal relate to Skyline Properties’ other ground leases?
It repeated the structure of Skyline Properties’ $65M 236 Fifth Avenue transaction: the same ground tenant, The Kaufman Organization, on a 99-year Midtown South ground lease. It also took Skyline Properties’ published ground-lease record past $120M.
Deal Metrics
Transaction Parties
Buyer
The Kaufman Organization
Seller
MFM Properties
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More press on 135 West 29th Street
1 press features covering the $35M transaction at 135 West 29th Street.
Price, buyer, seller, $/SF, source citations
