Garment District $48.6M trade is evidence of the neighborhood’s transition

256 West 38th Street
256 West 38th Street

A $48.6 million deal for a building that traded for $30 million only 18 months ago — a $250 per square foot to $400 per square foot price increase — is further evidence that Garment District real estate is on the rise. According to the New York Post, the 118,200 square-foot former apparel factory at 256 West 38th Street sold to American Realty Capital New York Recovery REIT in a Studley Capital Transaction Group-brokered deal. The seller was a a joint venture between East End Capital and GreenOak Real Estate.

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The joint venture had made extensive capital improvements to the building, renovating the lobby, elevators, HVAC system, façade and windows. The venture also attracted anchor office tenant Cache, a publicly traded women’s-wear retailer, which took three floors in spring 2012.

The area south of Times Square “is becoming a favorite market among tenants and investors [as it] is steadily transforming from fashion to a diversified mix of industries including tech, media, finance and professional services,” Will Silverman, Studley’s senior managing director, said. [NYP]Christopher Cameron