Trending

RPW looks to sell Garment District office building

Property could become part of 1031 with purchase of 275 Madison

From left: Robert Weisz, 240 West 35th Street and Richard Baxter
From left: Robert Weisz, 240 West 35th Street and Richard Baxter

Mere weeks after entering contract to buy Aby Rosen’s 275 Madison Avenue, RPW Group has placed its sole New York City asset on the market.

RPW is shopping around 240-246 West 35th Street, an 18-story, 165,000-square-foot office building in the Garment District that insiders expect will fetch about $120 million, or north of $700 per square foot.

The Class B property, located between Seventh and Eighth avenues, is 95 percent occupied. The office tenants are a mix of fashion and TAMI firms, with fashion designer Thom Browne serving as the biggest occupant at 20,000 square feet. Nearly two-third of the tenants have leases set to expire after 2020, according to an offering memorandum.

Average asking rents at the building are $55 per square foot.

Sign Up for the undefined Newsletter

In 2014, Westchester landlord RPW, led by Robert Weisz, entered the New York City by purchasing the property from Hidrock Realty for $80 million.

If the building were to sell, it could be part of a 1031 exchange with 275 Madison, sources said. RPW is set to close later this summer on the $270 million purchase of the 44-story tower from Rosen’s RFR Holding.

A JLL team led by Richard Baxter, Anthony Ledesma and Glenn Tolchin is marketing the West 35th Street property.

RPW’s holdings are largely concentrated in Westchester County, including a 570,000-square-foot, Class A office complex in Rye Brook.

Adam Pincus contributed reporting.

Recommended For You