Jones Lang LaSalle represents RPW Group in $108 million sale to ATCO Properties & Management

Manhattan, NY ATCO Properties & Management, one of Manhattan’s preeminent owner/operators of class A commercial real estate, has purchased 240-246 West 35^th St., an 18-story building in the Garment District, for $108 million. The transaction closed on December 20, 2016.

Tenants at the 165,000 s/f office property include Cablevision-owned media group Newsday; fashion design Jason Wu; men’s fashion and eyewear designer Thom Browne; technology company Fidelus Technology; foreign language school Spanish American Institute; and  bridal designer Reem Bridal. It is currently 96% occupied. The property is on 35th St., between 7th & 8th Aves., which is rapidly becoming a main east-west corridor between Hudson Yards and midtown.

MetLife provided a mortgage loan for the acquisition of the property. Other financial terms of the deal were not disclosed.

Richard Baxter (now with Colliers International) and Anthony Ledesma of Jones Lang LaSalle represented the seller, Westchester County-based RPW Group, in the transaction.

There were no outside brokers for the buyer.

The purchase marks ATCO’s first acquisition in the Garment District and the 12th acquisition in ATCO’s ACCRE investment platform since 2012. ATCO presently owns and manages more than 35 buildings ranging from high-rise office and residential towers to one-story industrial structures and high tech flex building.

The acquisition was made through ATCO’s City Center Real Estate Program, an investment vehicle designed to provide financing for central business district (CBD) commercial properties in select markets across the country.

“This acquisition at 240-246 West 35th St. reflects our continuing efforts to seek out opportunities in CBDs throughout the U.S., including our hometown of New York City,” said Damon Hemmerdinger, co-president of ATCO Properties & Management. “With the center of Manhattan moving south and west, we believe that 240-246 West 35th St. offers tremendous value for high quality tenants looking to be near Penn Station, Hudson Yards and Manhattan West.”

“It gives me great satisfaction to know that ATCO is the new owner of the property as it is a prominent company with an impeccable reputation,” said Robert Weisz, CEO of RPW Group, Inc. “I look forward to seeing ATCO develop the building to its full potential and continue to provide existing and future tenants with outstanding service.  240 has been an excellent investment for our family, and I have no doubt that it will be for ATCO as well.”