Namdar Realty Group has purchased the leasehold at 71 Fifth Avenue for $62 million. The 11-story building sits at the corner of Fifth Avenue and East 15th Street in Manhattan, spanning the Flatiron and Union Square submarkets. The deal closed on Oct. 22.
The seller was a joint venture between Madison Capital and Lubert-Adler Partners. Madison Capital had acquired the leasehold in 2016 for nearly $85 million upfront plus $3.5 million in annual rent. The joint venture began marketing the property in 2021, when market sources told Commercial Observer the sale could net as much as $150 million.
Namdar Realty has approximately 90 years remaining on the leasehold term. Samco Properties and the family of Mark Lapidus, former global real estate chief of WeWork, own the underlying land.
Meridian Capital Group's Helen Hwang, David Schechtman, Brian Szczapa and Ian Shoenfeld facilitated the transaction.
The building contains Class B office and retail space. Current tenants include WeWork, Dutch payment company Adyen, and artificial intelligence video-editing startup Captions. An unnamed AI company recently secured a roughly 30,000-square-foot off-market lease in the building. Ground-floor retail space is partially occupied by City National Bank, with another unit vacant. The building's website advertises one full-floor availability spanning 15,227 square feet.