Kaufman Investments, Two Sigma pay $51M for office in Flatiron District

Kaufman Investments and Two Sigma Investments through the entity 40 West 25th Street Owner LLC paid $51 million to Kaufman Organization and AXA Financial through the entity 40 W 25 LLC for the office building (O6) at 40 West 25th Street in Flatiron District, Manhattan. The expected use is cash flowing. Kaufman Investments is an affiliate of Kaufman Organization.

The Commercial Observer reported on March 24, 2026 that Kaufman Investments and Two Sigma Real Estate paid $52 million to Kaufman Organization and AXA Financial for 40 West 25th Street. The brokers were Adam Spies, Avery Silverstein, Brett Siegel, Adam Doneger, Marcella Fasulo, and Josh King of Newmark.
The deal closed on March 19, 2026 and was recorded on March 25, 2026. The property has 128,965 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $395 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller bought the property on November 27, 2019, for $121.5 million. The signatory for Kaufman Organization was Steven Kaufman . The signatory for Kaufman Investments and Two Sigma Investments was Michael Kazmierski . The contract date was January 12, 2026.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has no record that the buyer Kaufman Investments had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Kaufman Organization had not purchased any other properties and sold one property in one transaction for a total of $88 million over the same time period. The 128,965-square-foot property generated revenue of $8.6 million or $67 per square foot, according to the most recent income and expense figures.

The property

The office building in Flatiron District has 128,965 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 103 feet and is 98 feet deep with a total lot size of 10,221 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $40.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,015 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 5, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 2.2 times the average sales volume among other neighborhoods with $707.2 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, Flatiron District is the 10th most active neighborhood among other neighborhoods. It had 5.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 23 percent of the neighborhood’s built space. There were 22 pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 20 commercial properties representing 804,635 square feet of the 1,382,183 square feet. The largest owner is Adams & Company, followed by Kaufman Organization and then Savanna.
There are no active new building construction projects on this tax block.

The majority, or 68 percent of the 1.4 million square feet of built space are office buildings, with elevator buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Kaufman Organization owned at least 15 commercial properties in New York City with 1,757,462 square feet and a city-determined market value of $401.4 million. (Market value is typically about 50% of actual value.) The portfolio has $179.6 million in debt, with top three lenders as Citibank, MetLife, and First Republic Bank respectively. Within the portfolio, all identified are office properties. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Kaufman Investments owned at least one commercial property in New York City with 214,349 square feet and a city-determined market value of $58.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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