NEW YORK CITY—ATCO Properties & Management closed Tuesday on its purchase of 240-246 W. 35th St., an 18-story building in Midtown, for $108 million. The 165,000-square-foot office property was sold by RPW Group, a Westchester County-based firm.

Close to Penn Station and Herald Square, the Garment District's building is 96% occupied. Its tenant roster includes firms such as Cablevision-owned media group Newsday; fashion designer Jason Wu; men's fashion and eyewear designer Thom Browne; technology company Fidelus Technology; foreign language school Spanish American Institute and high-end bridal designer Reem Bridal. The office tower is between Seventh and Eighth avenues, an 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 JLL represented the seller in the transaction. Jordan Roeschlaub and Daniel Fromm of Newmark Grubb Knight Frank served as the debt brokers on the deal

The purchase marks ATCO's first acquisition in the Garment District and the 12th acquisition in the firm'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 Manhattan properties such as 555 Fifth Ave., 40 Central Park South, 41 W. 58th St., 630 Third Ave., 381 and 373 Park Ave. 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 W. 35th St. reflects our continuing efforts to seek out opportunities in CBDs throughout the US, including our hometown of New York City,” says Damon Hemmerdinger, co-president of ATCO Properties & Management. “With the center of Manhattan moving south and west, we believe that 240-246 W, 35th St, offers tremendous value for high quality tenants looking to be near Penn Station, Hudson Yards and Manhattan West.”

Adds Robert P. Weisz, CEO, RPW Group, “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. 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.”

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 E, 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, NC.

NEW YORK CITY—ATCO Properties & Management closed Tuesday on its purchase of 240-246 W. 35th St., an 18-story building in Midtown, for $108 million. The 165,000-square-foot office property was sold by RPW Group, a Westchester County-based firm.

Close to Penn Station and Herald Square, the Garment District's building is 96% occupied. Its tenant roster includes firms such as Cablevision-owned media group Newsday; fashion designer Jason Wu; men's fashion and eyewear designer Thom Browne; technology company Fidelus Technology; foreign language school Spanish American Institute and high-end bridal designer Reem Bridal. The office tower is between Seventh and Eighth avenues, an 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 JLL represented the seller in the transaction. Jordan Roeschlaub and Daniel Fromm of Newmark Grubb Knight Frank served as the debt brokers on the deal

The purchase marks ATCO's first acquisition in the Garment District and the 12th acquisition in the firm'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 Manhattan properties such as 555 Fifth Ave., 40 Central Park South, 41 W. 58th St., 630 Third Ave., 381 and 373 Park Ave. 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 W. 35th St. reflects our continuing efforts to seek out opportunities in CBDs throughout the US, including our hometown of New York City,” says Damon Hemmerdinger, co-president of ATCO Properties & Management. “With the center of Manhattan moving south and west, we believe that 240-246 W, 35th St, offers tremendous value for high quality tenants looking to be near Penn Station, Hudson Yards and Manhattan West.”

Adds Robert P. Weisz, CEO, RPW Group, “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. 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.”

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 E, 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, NC.