The Real Deal New York

Israeli insurer takes stake in ATCO’s
240 West 35th St.

RPW sold the 18-story office building for $108M late last year
By Mark Maurer | October 30, 2017 11:02AM

240 West 35th Street, Damon Hemmerdinger and Shlomo Eliahu

Israeli insurance giant Migdal Group bought a 49 percent stake in an 18-story Garment District office building owned by ATCO Properties & Management, the seller told The Real Deal.

ATCO bought the 165,000-square-foot building at 240-246 West 35th Street late last year from RPW Group for $108 million. The firm then launched a renovation that involved the upgrading of the lobby and elevators.

The price that Migdal paid for the partial interest was not immediately clear.

ATCO will maintain a 51 percent stake. The building’s gross value is said to now exceed $108 million since the 2016 purchase, as a result of the renovation and stake deal.

The hip-hop magazine the Source signed a new lease and the daily newspaper amNewYork inked a renewal.

Other tenants include fashion designer Jason Wu, tech firm Fidelus Technology and foreign-language school Spanish American Institute.

“This transaction is a key indication of the strength of the Midtown West office market, specifically around Hudson Yards and transportation infrastructure,” said Damon Hemmerdinger, co-president of ATCO, in a statement.

ATCO, which made its Garment District debut with the 35th Street purchase, also owns more than 35 buildings, including 555 Fifth Avenue and 40 Central Park South.

Migdal Group, founded in 1934 and led by Shlomo Eliahu, said it owns about $67 billion in assets worldwide.