The Real Deal New York

ATCO refinances Garment District building for $73M

Loan comes from MetLife Investment Management
By Eddie Small | January 10, 2018 01:45PM

ATCO Properties has refinanced its Garment District building at 240-246 West 35th Street with a $72.75 million loan.

The fixed-rate, five-year loan comes from MetLife Investment Management. Newmark Knight Frank’s Jordan Roeschlaub and Dustin Stolly arranged the deal, according to ATCO.

ATCO, a family-run investment firm led by H. Dale Hemmerdinger and based in Midtown, purchased the 18-story, 165,000-square-foot office building in 2016 from RPW Group for $108 million. In October, the company established a joint venture partnership with Israeli insurance company Migdal Group for the property. ATCO maintained a 51 percent ownership interest in the building, while Migdal took the remaining stake.

Dale Hemmerdinger

ATCO’s Manhattan portfolio includes 555 Fifth Avenue, 373 Park Avenue South and 630 Third Avenue. The West 35th Street building was its first purchase in the Garment District.

The company has made several renovations to the building since purchasing it and is currently upgrading the elevator.

Dustin Stolly (Credit: Emily Assiran)

Last year, ATCO leased 47,000 square feet of space in the building between renewals and new tenants. These include a 10,000-square-foot, 10-year renewal with Newsday, an 11,000-square-foot five-year renewal with fashion designer Jason Wu and a new 12-year lease for 5,000 square feet with Café Metro.