Kohan Retail buys $120M note secured by 5-building Kaufman Org. Manhattan office portfolio

Kohan Retail Investment Group through the entity Kohan Retail Capital Funding LLC bought a note with an original principal of $120 million from Capital One secured by five Kaufman Organization commercial properties including the office building (O3) at 119 West 24th Street in Chelsea, Manhattan, office building (O6) at 45 West 27th Street in NoMad, Manhattan, and office building (O6) at 19 West 24th Street in Flatiron District, Manhattan. All five properties are ground leased from fee owners.
The deal closed on April 9, 2025 and was recorded on June 27, 2025. The prior lender was Capital One which held debt that had an original loan amount of $120 million.
The five properties have 307,537 square feet of built space and 21,799 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $zero 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 signatory for Kohan Retail Investment Group was Mehran Kohansieh . This is a five-building portfolio with the loans secured by ground leased properties, with the landlords including Edison Properties (119 West 24th Street). To finance the loan purchase, Kohan borrowed an undisclosed amount from Hakimian Partners, which Traded NY first reported.

The co-working firm Industrious sold it’s NYC leases including in 119 West 24th Street, for $3.8 million to CBRE, property records show.

Prior sales and revenue

The five properties with a total of 307,537 square feet of built space generated revenue of $24.4 million per year or $79 per square foot.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation and $29,890 in OATH penalties in the last year.

The neighborhood

In Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 6th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Chelsea has 1.5 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 119 West 24th Street, PincusCo has identified the owners of 12 of the 25 commercial properties representing 731,084 square feet of the 1,107,133 square feet. The largest owner is Lam Generation, followed by Edison Properties and then Magna Hospitality Group.
On the tax block, there were five new building construction projects totaling 329,947 square feet. The largest is a 341-unit, 141,734 square-foot hotel/dormitory/shelter (R-1) building submitted by Lam Generation and filed by Jeffrey Lam with plans filed September 17, 2014 and permitted February 3, 2016. The second largest is a 375-unit, 126,733 square-foot hotel/dormitory/shelter (R-1) building submitted by Sal Aquilato with plans filed February 14, 2018 and permitted July 29, 2020.

The majority, or 49 percent of the 1.1 million square feet of built space are office buildings, with hotel buildings next occupying 36 percent of the space.

The borrower

The PincusCo database currently indicates that Kaufman Organization owned at least 10 commercial properties in New York City with 1,449,925 square feet and a city-determined market value of $281.3 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.

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