ATCO Properties & Management, one of Manhattan’s preeminent owner/operators of class A commercial real estate, announced today the closing of a $72.75 million refinancing of 240-246 West 35th Street, an 18-story building in the Garment District.
MetLife Investment Management provided the new five year, fixed rate loan. The financing closed on January 5, 2018. Jordan Roeschlaub and Dustin Stolly of Newmark Grubb Knight Frank arranged the transaction.
ATCO, which acquired the 165,000 square-foot property in 2016, was able to refinance the building after only one year as a result of the significant value the company created by virtue of new leases executed and capital projects implemented in 2017. Over the last 12 months, ATCO has completed several improvements at the building, including a new lobby renovation, common corridor upgrades and sidewalk improvements. Currently, an elevator upgrade/modernization is underway.
On the leasing front, ATCO has executed 47,000 square feet of new leases and renewals during 2017 in the building. They include a 10-year, 10,100 square foot renewal with Cablevision-owned media group Newsday, publisher of amNewYork; a five-year, 11,070 square-foot lease extension with technology company Fidelus Technologies; a five-year, 11,221 square-foot renewal with leading fashion designer Jason Wu; a five-year, 4,634 square-foot lease with industrial services company Carrier Enterprises Northeast, LLC; a five-year 1,019 square-foot lease with watermarking firm Nexguard Labs; and a new 12-year, 5,181 square-foot retail lease with fast-causal restaurant Café Metro.
The company also established a joint venture partnership in the property with Israeli-based Migdal Group in October 2017. As part of the deal, ATCO retains a 51% majority ownership interest in the building, while Midgal holds a 49% interest.
The purchase of 240-246 West 35th Street was ATCO’s first acquisition in the Garment District and the 12th acquisition in ATCO’s City Center Real Estate Program 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 Avenue, 40 Central Park South, 41 West 58th Street, 630 Third Avenue, 381 and 373 Park Avenue South.
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