Atlas Capital Group selling 548 W. 22nd Street to Fortinet

A cybersecurity firm is buying a building in West Chelsea for around $50 million to use as its offices.

Fortinet, a $70 billion-worth California-based company that sells firewalls and other security products, is in contract to buy the building at 548 West 22nd Street from Atlas Capital Group, The Real Deal has learned.

Fortinet plans to use the 45,000 square-foot building, once the home of the DIA Art Foundation, as its offices, according to a source familiar with the deal. The contract price is more than $1,100 per square foot — representing the high prices deep-pocketed users will pay to acquire their own real estate.

Fortinet has a market cap of about $73 billion.

A spokesperson for Atlas Capital, founded in 2006 by former UBS bankers Jeffrey Goldberger and Andrew Cohen, declined to comment. A representative for Fortinet couldn’t be immediately reached.

The building has a curb cut and a carport elevator that services every floor, as well as 4,000 AMP power that can handle charging electric vehicles, according to a listing from Serhant, which negotiated the deal.

The property was reportedly listed with an asking price of $68 million in January.

It is unclear exactly when Atlas acquired the building. Property records show Kevin Maloney’s Property Markets Group bought it in 2014 for about $40 million. The seller, Kilian LLC, had purchased it from DIA for about $1 million less in 2007.

PMG had planned a 19-story residential condo on the site, but apparently never went through with the project. Atlas began signing mortgage documents for the property in 2018, indicating it may have been a partner with PMG.

Nearby in West Chelsea, self-storage investor Robert Moser’s Prime Group Holdings and Empire Capital went into contract to buy the Ironworks buildings at 511-541 West 25th Street for $50 million.

The contract price there works out to about $520 per square foot, or roughly half of what Fortinet is paying for its space. Prime Group and Empire plan to operate their building as a combination of storage and office.