RPW looks to sell Garment District office building

Property could become part of 1031 with purchase of 275 Madison

Jun.June 28, 2016 02:40 PM

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.

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.

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