The Real Deal New York

ATCO to buy Garment District office building for $108M

18-story property at 240 West 35th Street was RPW's first NYC asset

October 07, 2016 06:06PM
By Mark Maurer Twitter_logo_blue copy

From left: Robert Weisz, 240 West 35th Street and H. Dale Hemmerdinger

From left: Robert Weisz, 240 West 35th Street and H. Dale Hemmerdinger

ATCO Properties & Management is in contract to buy RPW Group’s 18-story office Garment District office building for $108 million, or about $655 per square foot, sources told The Real Deal.

RPW, a Westchester County-based landlord, put the 165,000-square-foot Class B property at 240-246 West 35th Street on the market in June. The building last sold for $80 million in 2014.

RPW is trading the first New York City office building it purchased, just two months after buying another property. It picked up the 44-story landmarked tower at 275 Madison Avenue from Aby Rosen’s RFR Holding TRData LogoTINY for more than $270 million.

The property is 95 percent leased to a variety of TAMI and fashion tenants. Fashion designer Thom Browne is the biggest occupant at 20,000 square feet. Almost two-thirds of the tenants have leases expiring after 2020, the offering memorandum shows.

JLL’s Anthony Ledesma and Richard Baxter are brokering the sale.

Representatives for ATCO and RPW could not be reached for comment.

ATCO, a family-run Midtown-based investment firm led by H. Dale Hemmerdinger, also owns office properties at 555 Fifth Avenue and 630 Third Avenue.