Deals & development · 10/28/2026
Namdar Realty Group Buys 71 Fifth Avenue Leasehold for $62M
Namdar Realty Group bought the leasehold on the 11-story Class B office and retail building at Fifth Avenue and East 15th Street for $62 million. Sellers Madison Capital and Lubert-Adler Partners had hoped for up to $150 million in 2021. Samco Properties and the family of Mark Lapidus own the land under the building.
Reported by Commercial ObserverRead the original ↗
What happened
Namdar Realty Group, led by Igal Namdar, bought the leasehold at 71 Fifth Avenue for $62 million, Commercial Observer reported on 10/28/2026. The deal covers the whole 11-story building at the corner of Fifth Avenue and East 15th Street. The building has Class B office space and ground-floor retail. It sits where Manhattan's Flatiron and Union Square office submarkets meet.
The seller was a joint venture of Madison Capital and Lubert-Adler Partners. They began marketing the leasehold in 2021. At that time, market sources told Commercial Observer the sale could bring as much as $150 million. The final price was $62 million. The sale closed on 10/22/2026, according to Traded, which first noted the deal. Helen Hwang, David Schechtman, Brian Szczapa and Ian Shoenfeld of Meridian Capital Group handled the transaction.
Namdar is buying the building's leasehold, not the land. About 90 years remain on the lease term, according to Szczapa. The land is owned by family firm Samco Properties and the family of Mark Lapidus, a former global real estate chief at WeWork. Madison Capital bought the leasehold in 2016. It agreed to pay nearly $85 million upfront for the then fully leased building, plus $3.5 million in annual rent, according to The Real Deal as cited by Commercial Observer. It is not clear when Lubert-Adler joined.
City National Bank partly occupies the ground-floor retail space. Another retail unit is vacant. Namdar Realty Group, Madison Capital and Lubert-Adler Partners did not respond to Commercial Observer's requests for comment.
Key facts
- Address
- 71 Fifth Avenue, at East 15th Street, Manhattan
- Building
- 11-story Class B office and retail building
- Price
- $62 million for the leasehold
- Buyer
- Namdar Realty Group (Igal Namdar)
- Seller
- Joint venture of Madison Capital and Lubert-Adler Partners
- Closing date
- 10/22/2026, according to Traded
- Lease term left
- About 90 years, according to Meridian's Brian Szczapa
- Landowners
- Samco Properties and the family of Mark Lapidus
What it means
Buyers and owners
The leasehold sold for $62 million. In 2021 market sources had pointed to as much as $150 million, and the seller paid nearly $85 million upfront in 2016. The deal is one data point on how Class B office leaseholds near Union Square are trading now.
Landlords
This is a commercial office and retail deal. The material does not mention any residential units. Small residential landlords may read it as a signal of office values in the area, but it does not change any housing rules or programs.
The highlights
- Sellers hoped for up to $150M when they began marketing the leasehold in 2021.
- Madison Capital paid nearly $85M upfront for the leasehold in 2016.
- About 90 years remain on the leasehold term; the sale closed 10/22/2026.
Why it matters Landlords
Older Manhattan office leaseholds are trading far below past asking prices, a sign of how much Class B office values have fallen.
Not known yet
- What ground rent Namdar will pay under the lease, and whether the $3.5 million annual rent reported in 2016 still applies
- How much of the office space is currently leased
- What Namdar plans for the building or the vacant retail unit
- How the purchase was financed
Background
In a ground lease, one party owns the land and another owns the right to use and operate the building for a set term, usually paying ground rent to the landowner. The value of a leasehold generally depends on how many years remain, the ground rent terms and the building's income. Office and retail buildings like this one are commercial property. They are not covered by New York's residential rent stabilization rules.
Buildings in this story
- 71 Fifth Avenue · building facts and open city records
Summary written by Bulwark from Commercial Observer’s reporting. The original story is at commercialobserver.com. This is general information, not legal advice.
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