236 Fifth Avenue Specialist
Ground Lease Broker
Robert Khodadadian structured the $65M ground lease at 236 Fifth Avenue in NoMad and advises on 99-year ground leases throughout the Flatiron-NoMad corridor around Madison Square Park.
236 Fifth Avenue: $65M 99-Year Ground Lease
Robert Khodadadian structured this ground lease between LCT Associates (Scott Chiou) as fee owner and The Kaufman Organization as ground tenant.
The 95,000 SF NoMad office building at 236 Fifth Avenue was valued at over $800 per square foot, which makes this one of the largest ground lease transactions in NoMad history. It showed that a long-term ground lease works in a Manhattan submarket where land values are climbing fast.
The Real Deal and Commercial Observer both covered the transaction, and Robert Khodadadian spoke with them about ground lease strategy, rent reset structuring, and the return of the ground lease as a serious real estate tool.
Deal Summary
Why Ground Leases in NoMad?
Rapid Land Appreciation
NoMad land values have climbed sharply. A ground lease lets the owner keep the long-term appreciation and collect income today.
Multigenerational Wealth
Family-held NoMad properties can generate income through ground leases while preserving ownership for future generations.
Developer Access
Developers can control a site near Madison Square Park with less capital up front, which lets them take on larger projects.
Tax Efficiency
Ground lease structures can defer capital gains and provide estate planning benefits compared to outright sales.
Institutional Interest
Experienced operators like the Kaufman Organization actively look for ground lease positions in prime NoMad locations.
Reset Protection
Well-structured rent resets protect landlord income against inflation while providing tenants predictable costs.
NoMad Ground Lease
Why is NoMad particularly suited for ground lease transactions?
Land values in NoMad have risen quickly, which is when a ground lease makes the most sense. The landowner keeps the long-term appreciation and collects income today, and the developer gets a prime site near Madison Square Park for less capital up front. The $65M ground lease at 236 Fifth Avenue shows an institutional tenant will commit to this structure in this submarket.
What was the 236 Fifth Avenue ground lease transaction?
The 236 Fifth Avenue ground lease was a $65M, 99-year transaction between LCT Associates (Scott Chiou) as landlord and The Kaufman Organization as tenant. Robert Khodadadian structured the deal, which valued the 95,000 SF office building at over $800 per square foot. It is one of the largest ground leases in NoMad history.
How do ground leases compare to sales in NoMad?
A ground lease typically gives the landowner a 4-6% initial yield with built-in escalations, against the one-time liquidity of a sale. For a family planning ownership across generations, or for estate planning, a ground lease keeps the property in the family and still produces income. The Kaufman Organization's NoMad portfolio shows that serious tenants want long-term ground lease positions here.
What ground lease terms are typical in NoMad?
Typical NoMad ground lease terms: 99-year terms, initial rent at 4-6% of land value, periodic escalations (CPI or fixed), rent resets every 20-25 years, and the tenant's right to finance improvements. Subordination depends on how much risk the landlord will take and the rent they want.
Who are typical NoMad ground lease tenants?
NoMad ground lease tenants include: institutional office operators like Kaufman Organization, hospitality groups developing boutique hotels, developers creating mixed-use properties, and tech companies seeking long-term headquarters positions near Madison Square Park.
Considering a NoMad Ground Lease?
If you own land in NoMad and want income without selling, or you're a developer looking for a site near Madison Square Park, Robert Khodadadian can structure the ground lease.