A $48.6 million deal for a building that traded for $30 million only 18 months ago — a $250 per square foot to $400 per square foot price increase — is further evidence that Garment District real estate is on the rise. According to the New York Post, the 118,200 square-foot former apparel factory at 256 West 38th Street sold to American Realty Capital New York Recovery REIT in a Studley Capital Transaction Group-brokered deal. The seller was a a joint venture between East End Capital and GreenOak Real Estate.
The joint venture had made extensive capital improvements to the building, renovating the lobby, elevators, HVAC system, façade and windows. The venture also attracted anchor office tenant Cache, a publicly traded women’s-wear retailer, which took three floors in spring 2012.
The area south of Times Square “is becoming a favorite market among tenants and investors [as it] is steadily transforming from fashion to a diversified mix of industries including tech, media, finance and professional services,” Will Silverman, Studley’s senior managing director, said. [NYP] –Christopher Cameron