Fidelus Technologies and Newsday Recommit to the 165,000 SF Property, While Northstar Business Enterprises, Publisher of the Source Magazine, Joins Tenant Roster
Just six months after ATCO Properties & Management finalized its multi-million dollar acquisition of 240-246 West 35th Street, three companies have signed long-term leases and renewals totaling approximately 22,898 square feet at the 18-story class A property in the Garment District.
In the largest transaction, telecommunications company Fidelus Technologies, LLC is extending its 11,070 square-foot lease on the entire 6th floor for an additional five years. The firm, which specializes in Microsoft and Cisco solutions, has been located at the property since 2003. Barry Zeller of Cushman & Wakefield and Mitchel Kunikoff and Mo Dweck of Lee & Associates represented the tenant in the transaction, while John Cinosky and Jarad Winter of ATCO Brokerage Services represented ownership in-house.
Also renewing is Cablevision-owned media group Newsday LLC, which has taken a 10-year, 10,100 square-foot lease on a portion of the 9th floor. The space houses the offices of amNewYork. Greg Kraut of K Property Group and Frank Pagano of Avison Young represented the tenant in the long-term transaction, while William Cohen and Andrew Weisz of Newmark Grubb Knight Frank represented the landlord.
And lastly, Northstar Business Enterprises, LLC, the publisher of The Source, the longest-running rap and hip-hop magazine, and Jones Magazine, has signed a new 1,728 square-foot leasing transaction comprising a portion of the fourth floor. William J. McCollum of Prime Manhattan Realty represented the tenant in the transaction, while John Cinosky and Jarad Winter of ATCO Brokerage Services represented ownership in-house. Asking rents were $56 per square foot in all three transactions.
According to Damon Hemmerdinger, co-president of ATCO Properties & Management, the building’s outstanding location, which is rapidly becoming a main east-west corridor between Hudson Yards and Midtown, is driving the recent leasing activity at the property.
“When we acquired 240-246 West 35th Street at the end of 2016, we believed that the building offered tremendous value for high quality tenants looking to be near Penn Station, Hudson Yards and Manhattan West,” Hemmerdinger added. “These three transactions are a key indication of the strength of the market, as well as our family’s commitment to delivering best-in-class space and responding to our new and existing tenants needs.”
Situated steps away from Penn Station and Herald Square, the 165,000 square-foot office property, which is located between 7th & 8th Avenues, is currently 96% occupied. Other major tenants at the building include leading fashion design Jason Wu; award-winning men’s fashion and eyewear designer Thom Browne; leading foreign language school Spanish American Institute; and high-end bridal designer Reem Bridal.
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.
Outside of Manhattan, ATCO is in the planning stages to develop Camp North End, a 75-acre site in Charlotte, N.C. involving adaptive reuse of the site’s existing buildings to allow a mix of commercial uses, including office, retail and residential. In addition, ATCO recently provided a preferred equity investment in 525-545 Broadway in East Williamsburg, Brooklyn; acquired 38 Main Street in downtown Westport, CT; bought 137 East Franklin Street in downtown Chapel Hill, N.C.; and purchased a 15.5-acre development site in the NoDa Greenway District near the Blue Line Extension light rail in Charlotte, N.C.
For more information about ATCO, please visit the company website at http://www.atco555.com/index.
About ATCO
ATCO is a real estate investment and ownership platform deploying capital in select cities across the United States, with a particular emphasis on value-add opportunities in urban locations. We seek to improve people’s lives by creating places that they genuinely want to work, play, or live, and by doing our work with a long-term perspective.
Through eight decades and four generations, ATCO has owned, managed, and developed a diverse real estate portfolio, primarily in and around New York City and also in select markets we target. ATCO presently owns and manages more than 20 buildings ranging from high-rise office and residential towers to retail properties, from one-story industrial structures to high tech flex buildings. The portfolio of New York City properties includes: 555 Fifth Avenue, 40 Central Park South, 41 West 58th Street, 630 Third Avenue, 381 and 373 Park Avenue South, 515 Madison Avenue and the Atlas Terminals. Nationally, the company owns properties in Austin, Texas; Chapel Hill, North Carolina; Indianapolis, Indiana; Darien, Stamford and Westport, Connecticut; Baltimore, Maryland; and Orlando, Florida. Internationally, ATCO has investments in seven European countries.
