Kaufman Investments is acquiring two adjacent Madison Square properties from Savanna for approximately $125 million. The buildings at 24-28 West 25th Street and 48 West 25th Street, marketed as the Madison Square Collection, represent a significant trophy asset sale in Manhattan's Flatiron neighborhood.
Eastdil Secured brokers Gary Phillips and Will Silverman negotiated the transaction. The deal reflects strong institutional investor appetite for stabilized, well-located Manhattan office and mixed-use assets despite market headwinds in the commercial real estate sector.
Kaufman Investments, the buyer, typically holds properties long-term and positions them for operational improvements or repositioning. The acquisition signals confidence in the Madison Square market corridor, which remains one of Manhattan's most resilient commercial neighborhoods despite post-pandemic office challenges.
For Savanna, the sale allows the developer and owner to redeploy capital into other projects while exiting properties that may no longer fit its portfolio strategy. The $125 million price point reflects current market valuations for Class-A Manhattan office space with ground-floor retail or mixed-use components.
Tenants in the buildings gain stability under Kaufman's stewardship, as the firm typically maintains existing leases while investing in capital improvements. The transaction also signals to other owners that quality Manhattan real estate retains buyer interest at reasonable valuations, particularly for properties with strong lease structures and location fundamentals.
For competing developers and investors watching the market, this deal provides a pricing benchmark for Madison Square properties. It demonstrates that even in a selective environment, institutional buyers remain willing to deploy substantial capital for trophy assets with proven income streams and Manhattan's enduring appeal.
The transaction closes out another chapter in Savanna's portfolio optimization efforts. Kaufman's acquisition underscores the lasting value of well-positioned Flatiron commercial real estate among long-term