NEW YORK CITY—ATCO Properties and Management, a New York, fourth-generation family owned and operated real estate company, has sold a 49% ownership interest in an 18-story building at 240-246 West 35th Street to the Migdal Group, one of the oldest and largest insurance and financial groups in Israel. ATCO is retaining a 51% majority ownership interest in the property. The price for the equity stake remains undisclosed.
ATCO purchased the 161,588 square foot building in October 2016 from RPW Group, for $108 million, at $668 per square foot. At the time, the building was 95% occupied, according to Real Capital Analytics. The building is located on 35th Street, between 7th & 8th avenues, what ATCO refers to as a “main east-west corridor between Hudson Yards and Midtown.”
Current tenants include Cablevision-owned media group, Newsday; Northstar Business Enterprises, the publisher of hip-hop magazine, The Source, and Jones Magazine; fashion designer, Jason Wu; men’s fashion and eyewear designer Thom Browne; Fidelus Technology; foreign language school, Spanish American Institute; and Reem Bridal store.
ATCO co-president, Damon Hemmerdinger says, “This transaction is a key indication of the strength of the Midtown West office market, specifically around Hudson Yards and transportation infrastructure.”
Jonathan Ross, head of international real estate at Migdal Group, says the partnership is their next step in a long-term plan of strategic investments in gateway markets.
The purchase of 240-246 West 35th Street marked ATCO’s initial entrance into the Garment District. The company presently owns and manages more than 35 buildings including high rise offices, residential towers and one-story industrial structures. Its notable Manhattan properties include 555 Fifth Avenue, 40 Central Park West, 41 West 58th Street, 630 Third Avenue and 373 and 382 Park Avenue South.