Israeli firm Migdal Group has acquired a 49 percent stake in a Midtown West office tower.
The firm entered a joint venture for the ownership of 240-246 West 35th Street, an 18-story property located between 7th and 8th Avenue. ATCO Properties, which acquired the tower last year, will retain a 51 percent interest. The firm, which bought the building from RPW Group for $108 million, did not disclose the purchase price for the minority share in the tower.
“This transaction is a key indication of the strength of the Midtown West office market, specifically around Hudson Yards and transportation infrastructure. We are excited to move forward with our new partner as we continue to take this unique asset to the next level,” said Damon Hemmerdinger, the co-president of ATCO Properties.
Migdal is best known as part of a joint venture that sold the CNN Building in Washington DC for $140.5 million. It also co-owns 180 Peachtree, a data center in Atlanta.
ATCO’s portfolio includes Manhattan properties such 555 Fifth Avenue, 40 Central Park South and 41 West 58th Street. The West 35th Street property is ATCO’s first acquisition in the Garment District. Tenants in the building include Cablevision-owned media group Newsday, fashion designer Jason Wu, men’s fashion and eyewear designer Thom Browne and technology company Fidelus Technology.