Westchester’s RPW Group Sells NYC Property for $108M

John Jordan | December 2016

240-246 West 35th Street

NEW YORK—Robert Weisz’s RPW Group, Inc. has sold an office building on the West Side of Manhattan in the Garment District to ATCO Properties & Management for $108 million.

Rye-Brook based RPW Group sold 240-246 West 35th St., an 18-story 165,000-square-foot office building located near Penn Station.  The transaction closed on Dec. 20th.

The office property’s major tenants include: Cablevision-owned media group Newsday; fashion design Jason Wu; men’s fashion and eyewear designer Thom Browne; technology company Fidelus Technology; lforeign language school Spanish American Institute; and high-end bridal designer Reem Bridal. The property is situated in the heart of 35th Street, between 7th and 8th avenues, and is 96% occupied.

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 La Salle 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 buildings, including notable Manhattan properties such as 555 Fifth Ave., 40 Central Park South, 41 West 58th St., 630 Third Ave., 381 and 373 Park Avenue South.

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

“This acquisition at 240-246 West 35th Street 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 Street 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 Weisz, CEO of RPW Group. “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.”

Among RPW Group’s notable suburban holdings include 800 Westchester Ave. in Rye Brook and 1133 Westchester Ave. in White Plains.

The acquisition is the latest in a series of investments by ATCO in the Tri-State area and the Mid-Atlantic region. Most recently, ATCO provided a preferred equity investment in 525-545 Broadway in East Williamsburg, Brooklyn; acquired 38 Main St. in downtown Westport, CT; bought 137 East Franklin Street in downtown Chapel Hill, NC and purchased a 15.5-acre development site in the NoDa Greenway District near the Blue Line Extension light rail in Charlotte, N.C.

 

John Jordan
Editor, Real Estate In-Depth