NEW YORK CITY—After ground-leasing five of its Ring portfolio office buildings to the Kaufman Organization, Gary Barnett's Extell Development has closed on the sale of those properties to HLP Properties in a deal worth over $250 million, according to the Real Deal.
Collectively, the commercial buildings span over 400,000 square feet in the heart of Midtown South, and were part of Barnett's 14-building acquisition from brothers Frank and Michael Ring. The properties are 13 W. 27th Street, 119 W. 24th St., 155 W. 23rd St., 45 W. 27th St. and 19 W. 24th St.
Four of the buildings are ground-leased to the Kaufman Organization and Iowa-based Principal Real Estate Investors, while one is ground-leased to Kaufman and investment giant Goldman Sachs.
The deal is a 1031 exchange for HLP, which closed in May on the sale of a massive High Line development site to Ziel Feldman's HFZ Capital Group for $870 million. HLP is an affiliate of New Jersey-based Edison Properties and its equity partners.
The Ring brothers reportedly mismanaged their portfolio, leaving the buildings mostly vacant despite Midtown South's increasing popularity with technology and media tenants. Barnett bought Frank Ring's 50% stake in the portfolio for over $300 million in 2013. Earlier, Barnett acquired a controlling interest in Michael Ring's 50% stake, reportedly for close to $113 million.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
