ATCO buys out Ruben at 630 Third Avenue for $98M

A six-decade partnership between ATCO Properties and Ruben Companies over 630 Third Avenue has come to an end.

H. Dale Hemmerdinger’s real estate investment firm bought out Richard Ruben’s stake in the Midtown East office building for $97.8 million, according to property records filed Monday. The sale was between “related companies or partners,” the deed shows.

ATCO’s Kate Hemmerdinger Goodman said in a statement that the transaction represents the firm’s “ongoing faith in this neighborhood and our continued bullishness on New York City’s office market.”

It is not clear whether Ruben’s decision to sell reflects a less optimistic view. Ruben Companies had yet to respond when reached for comment.

ATCO’s statement suggests that it does not plan to convert the building to residential, a hot topic of late. The firm declined to comment about its plans for the office building and how the deal values it per square foot.

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ATCO and Ruben co-developed the 23-story, 252,000-square-foot office building and have owned it since 1958. Among 630 Third Avenue’s notable tenants are law firms Schwartz Levine Stark and Leader Berkon Colao & Silverstein, as well as the tech consulting and management company Kraft Kennedy.

ATCO’s portfolio of office, retail and residential properties is centered in Manhattan. Its notable holdings include the 20-story, 254,000-square-foot office building at 555 Fifth Avenue; luxury rental buildings at 40 Central Park and 41 West 58th Street; the 18-story, 165,000-square-foot office building at 240 West 35th Street; and the 17-story, 220,000-square-foot office building at 373-381 Park Avenue South.

ATCO’s takeover of 630 Third Avenue comes as New York City investment sales have been crushed by the weight of higher interest rates. Dealmakers traded $7.86 billion worth of commercial property in the third quarter, a 30 percent decline from the second quarter, according to a report from Ariel Property Advisors.

The 568 deals, involving 701 individual properties, represented declines of 25 percent and 28 percent from the second quarter, respectively.

Office market sales’ dollar volume actually increased by 34 percent, from $1.59 billion in the second quarter to $2.13 billion in the third, nearly quadrupling the $536 million third-quarter deals last year. However, this year’s total was inflated by SL Green Realty’s $1.8 billion takeover of 245 Park Avenue from HNA Group in September.