Written by Nicholas Hein, Director @ Nomad

In a city known for skyscrapers and skyline-defining towers, it’s easy to focus on the glamour of ground-up development. Giants like Related, Silverstein, and Tishman Speyer push boundaries vertically, but quietly, value-add developers are rewriting the rules of urban reinvention. Groups like RXR, Vornado, Savanna, along with agile operators such as the Kaufman Organization, the Zar family’s ZG Capital,and  Zar Property NY, are transforming underperforming assets into high-yielding, Class A-caliber properties. These strategies breathe new life into well-located buildings without the time, cost, and entitlement risk of ground-up construction, proving that the smartest capital isn’t always chasing the skyline, but rethinking what’s already built.

Class A in Union Square – 799 Broadway

Let’s start with Savanna’s acquisition of 799 Broadway, a boutique Class A asset just off Union Square. The ±175,000 RSF asset was acquired in late 2024 for $255 million, or approximately $1,444 / PSF, well below replacement cost. At the time of acquisition, the building was roughly 70% occupied, anchored by Wellington Management’s 71,000 SF lease with a 16.5-year term, an institutional-grade tenant commitment that validated the long-term fundamentals of the asset.

Savanna quickly executed their value-add strategy delivering a curated amenity package that included a high-end fitness center, tenant lounge, landscaped outdoor terraces, and advanced wellness systems like MERV-13 filtration, UV sanitization, and touchless access. Asking rents at the time of acquisition hovered between $100–160 PSF, still reflecting pandemic-era softness. Following the amenity rollout, asking rents rose to $175–220 PSF, reflecting a clear value premium for fully amenitized, wellness-driven assets.This deal exemplifies the modern value-add thesis in a transitional market: secure quality real estate at a compelling basis, activate underutilized space with differentiated offerings, and align with long-term tenant demand for experience-focused, hospitality-infused work environments. This is just one example of a further alignment on flight to quality from the developer end of the spectrum, Savanna is a leader in recognizing trends and executing relentlessly.

Recognizing the Flight to Quality – 37 East 18^th Street

Then comes 37 East 18th Street, ±77,500 RSF in the heart of Flatiron, quietly picked up by Zar Property NY in August 2024 for just $27M, or $403/RSF. The building was only 42% occupied at close with a wide runway for value creation via prebuilt floors, activated rooftop, and lobby overhaul also with optionality for a residential conversion.

While not a glass-box Class A asset like 799 Broadway, its impact on the market may be just as loud. In a submarket with vanishing supply and a growing appetite for turnkey creative space, this kind of boutique repositioning hits a very specific, and very profitable, demand curve.

Zar moved quickly post-acquisition, engaging BKSK Architects to spearhead a top-down repositioning: lobby and elevator modernization, turnkey prebuilt floors, and a dual-zone rooftop activation, balancing private tenant use and shared amenity space. It mirrors a proven strategy we’ve seen from other operators like Kaufman (more on that later). The thesis is simple but effective: in high-demand submarkets, well-executed product not only leases, it leases at or near ask.

At 37 East 18th Street, value-add isn’t just about better space, it’s about rewriting the math. Zar reconfigured the layouts for smarter, more efficient tech forward layouts, with the ability to redesign the buildings asking rents. It’s a textbook value-add strategy: higher rents, more RSF, and a cash-flow profile built for exit. If leasing velocity holds, a $27M acquisition could flirt with $100M in value within two years.

Value-Add on a Ground Lease – 135 West 29th Street

In early 2021, The Kaufman Organization secured a 99-year ground lease on the ~81,000 RSF Haymarket Building, located just off what’s now know as Unicorn Lane. The deal closed at $34.5 million, or roughly $486/RSF, an assertive move given the mid-pandemic climate. At the time, the building was 70% leased, with ~25,000 SF of upside. The pricing reflected durable in-place cash flow from a diverse roster of creative, apparel, and tech tenants, and a clear opportunity to unlock additional value through strategic leasing and capital upgrades.

Kaufman wasted no time post-acquisition, rolling out a sharp, multi-layered value-add strategy led by NV Design Architecture, one that closely parallels the approach Zar is now executing at 37 East 18th. They recaptured ground-floor retail to expand the lobby, introduced rich new finishes throughout the common areas, upgraded elevator and mechanical systems, added 24/7 attended service, and delivered sleek, prebuilt suites with Kaufman’s signature wet pantry. The finishing move? A rooftop terrace amenity, split between building-wide access and a private section for the penthouse tenant. It’s a strategy Kaufman has run to great effect across their portfolio, from One NoMad to 45 West 27^th Street. And it worked again here: asking rents jumped from mid $30’s / PSF into the mid-$50s PSF, with upper floors reaching the mid-$60s. The market’s response said it all, design sells, rooftops lease, and Kaufman knows exactly how to execute.

Over the last two years, The Haymarket Building – 135 West 29th Street, has gone from a mid-pandemic gamble to a nearly full building, with just one full floor remaining and 3-year minimum terms across the board. That kind of lease maturity, especially in a tenant base dominated by high-growth startups, is a direct result of product quality. One of our clients, Extend, a $17M-backed document processing platform, made the jump from a WeWork into the building last year.

They were used to the flexibility of coworking but craved something real; space with intention, design, and permanence. What sealed the deal? A premium prebuild, an attended lobby, and a rooftop that makes Monday feel like Friday. Their team shows up seven days a week. The market’s not chasing square footage anymore, it’s chasing experience. 

Redefining Experience, Not the Skyline

These deals make one thing clear: success in real estate isn’t about owning the newest, tallest tower, it’s about owning with intention. It’s the kind of ownership that shows up, walks the halls, listens to tenants, and invests in the experience from the lobby to the rooftop. Value-add isn’t a trend. It’s a discipline. And groups like Savanna, Zar Property NY, and Kaufman have turned it into a signature move, blending location, timing, design, and execution into real returns. When you combine deep market knowledge with a sharp repositioning playbook, the results speak for themselves. And the next group rewriting that playbook, louder, faster, and hungrier? Nomad.

Watch what happens next.