Kaufman Investments, Two Sigma Real Estate Snap Up Boutique Office Building for $52M

A boutique office building at 40 West 25th Street just changed hands, Commercial Observer can first report.  

Kaufman Investments and Two Sigma Real Estate are the buyers, paying roughly $52 million for the 137,000-square-foot property, which includes 15,277 square feet of retail space, sources said. 

Newmark’s Adam Spies, Avery Silverstein, Brett Siegel, Adam Doneger, Marcella Fasulo and Josh King negotiated the sale. 

The asset last changed hands in 2019, when Kaufman Organization and AXA Financial purchased it from Japanese investment firm Unizo Holdings for roughly $120 million — or $880 per square foot — with a $76 million acquisition loan from MetLife. Now, following a lender-directed sale, a different Kaufman entity is stepping into ownership with Two Sigma Real Estate. 

The building between Fifth Avenue and Avenue of the Americas and just west of Madison Square Park was built in 2013 and renovated in 2021. It fits well into the overall Kaufman portfolio, with Michael Kazmierski, president and principle for Kaufman Investments, saying at the time of the 2019 acquisition that the firm had been “the most active investor in the Midtown South office market in the past half decade,” Kazmierski said. “This acquisition shows our commitment to the area and our belief in its evolution and growth.”

Currently around 80 percent leased, the building’s two largest tenants are Wasserman Media Group and Hello Fresh, each occupying 22,000 square feet at the building. Other tenants include GoodRx Holdings, Cosette Fifth Avenue and Chico’s Retail Services.  

Kaufman, Two Sigma Real Estate and Newmark declined to comment. AXA could not immediately be reached for comment. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com