236 Fifth Avenue Specialist
Ground Lease Broker
Robert Khodadadian structured NoMad's landmark $65M 236 Fifth Avenue ground lease—establishing expertise in 99-year ground lease transactions throughout the Flatiron-NoMad corridor near Madison Square Park.
236 Fifth Ave
Year Term
Building Size
Valuation
236 Fifth Avenue:
Robert Khodadadian structured this landmark 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—valued at over $800 per square foot—represents one of the largest ground lease transactions in NoMad history and demonstrates the viability of long-term ground lease structures in rapidly appreciating Manhattan submarkets.
This transaction was featured in The Real Deal and Commercial Observer, with Robert Khodadadian discussing ground lease strategy, rent reset structuring, and the resurgence of ground leases as a sophisticated real estate instrument.
Deal Summary
Why in NoMad?
Rapid Land Appreciation
NoMad land values have appreciated dramatically. Ground leases let landowners participate in long-term appreciation while generating current income.
Multigenerational Wealth
Family-held NoMad properties can generate income through ground leases while preserving ownership for future generations.
Developer Access
Ground leases allow developers to access Madison Square Park-adjacent locations with reduced upfront capital, enabling larger projects.
Tax Efficiency
Ground lease structures can defer capital gains and provide estate planning benefits compared to outright sales.
Institutional Interest
Sophisticated operators like Kaufman Organization actively seek 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?
NoMad's rapidly appreciating land values make it ideal for ground leases. Landowners can participate in long-term appreciation while generating current income, and developers can access prime Madison Square Park-adjacent locations with reduced upfront capital. The $65M 236 Fifth Avenue ground lease demonstrates institutional-quality execution in this submarket.
What was the 236 Fifth Avenue ground lease transaction?
The 236 Fifth Avenue ground lease was a landmark $65M, 99-year transaction between LCT Associates (Scott Chiou) as landlord and The Kaufman Organization as tenant. Robert Khodadadian structured this deal, which valued the 95,000 SF office building at over $800 per square foot—one of the largest ground leases in NoMad history.
How do ground leases compare to sales in NoMad?
Ground leases typically provide landowners 4-6% initial yields with built-in escalations, compared to the one-time liquidity of a sale. For multi-generational family ownership or estate planning, ground leases preserve ownership while generating income. The Kaufman Organization's NoMad portfolio demonstrates sophisticated tenant appetite for long-term ground lease positions.
What ground lease terms are typical in NoMad?
NoMad ground leases typically feature: 99-year terms, initial rents at 4-6% of land value, periodic escalations (CPI or fixed), rent resets every 20-25 years, and tenant rights to finance improvements. Subordination status varies based on landlord risk tolerance and desired rent levels.
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 ?
Whether you're a NoMad landowner exploring income alternatives or a developer seeking access to Madison Square Park locations, Robert Khodadadian provides expert ground lease structuring.