ATCO to buy Garment District office building for $108M

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

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 [TRDataCustom] 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.

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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.